1. education
2. english as a second language

A GUIDE TO FINANCIAL ACADEMIC VOCABULARY
A Project
Presented
to the Faculty of
California State University, Chico
In Partial Fulfillment
of the Requirements for the Degree
Master of Arts
in
Teaching International Languages
by
© Bryce Tavano 2013
Summer 2013
A GUIDE TO FINANCIAL ACADEMIC VOCABULARY
A Project
by
Bryce A. Tavano
Summer 2013
APPROVED BY THE DEAN OF GRADUATE STUDIES
AND VICE PROVOST FOR RESEARCH:
Eun K. Park, Ph.D.
APPROVED BY THE GRADUATE ADVISORY COMMITTEE:
Hilda Hernández, Ph.D.
Graduate Coordinator
Paula M. Selvester, Ed.D., Chair
Hilda Hernández, Ph.D.
PUBLICATION RIGHTS
No portion of this project may be reprinted or reproduced in any manner
unacceptable to the usual copyright restrictions without the written permission of the
author.
iii
ACKNOWLEGEMENTS
Dr. Paula Selvester and Dr. Hilda Hernandez.
iv
TABLE OF CONTENTS
PAGE
Publication Rights…………………………………………………………………...
iii
Acknowledgements…………………………………………………………………
iv
List of Tables………………………………………………………………….…….
vii
Abstract……………………………………………………………………………..
viii
CHAPTER
I.
II.
III.
Introduction……………………………………………………………..
1
Purpose……………………………………………………………
Scope……………………………………………………………...
Significance……………………………………………………….
Limitations………………………………………………………..
Definitions of Terms…………………..…………………………
Acronyms Frequently Used………………………………………
2
3
4
5
6
6
Review of the Literature………………………………………………...
8
Introduction……………………………………………………….
Corpus Linguistics………………………………………………...
Vocabulary………………………………………………………...
English for Academic Purposes…………………………………..
Conclusion………………………………………………………..
8
8
13
25
26
The Financial Academic Word List…………………………………….
28
Introduction……………………………………………………….
Development………………………………………………………
Results……………………………………………………………..
Discussion…………………………………………………………
28
28
31
33
v
CHAPTER
PAGE
IV. The Guide to Financial Academic Vocabulary…………………………
Purpose…………………………………………………………….
Task-Based Teaching……………………………………………..
The Effective Instructional Sequence…………………………….
Design……………………………………………………………...
Summary…………………………………………………………..
35
35
35
37
38
41
Discussion, Pedagogical Implications, and Conclusions……………….
42
Discussion…………………………………………………………
Pedagogical Implications………………………………………….
Conclusions……………………………………………………….
42
43
45
References…………………………………………………………………………...
47
Appendix…………………………………………………………………………….
57
V.
A.
The Guide to Financial Academic Vocabulary…………………………
vi
57
LIST OF TABLES
CHAPTER
1.
PAGE
Corpus Coverage of AWL, FAWL, and GSL………………………...…
vii
32
ABSTRACT
A GUIDE TO FINANCIAL ACADEMIC VOCABULARY
by
© Bryce Tavano 2013
Master of Arts in Teaching International Languages
California State University, Chico
Summer 2013
Last year, the enrollment of international students in American universities hit
an all-time high. Unable to find a book specifically targeting academic English for
finance, this need has been met by designing material for students and language
instructors. The project reports a corpus-based lexical study of university finance
textbooks. The study resulted in the first Financial Academic Corpus and Financial
Academic Word List. The word list identifies the most frequently used academic words
in university finance texts, and accounts for 13.51% of the texts under study. These
words are crucial for any English language learner who plans to pursue a bachelor‘s
degree in finance at an American University.
This project involves the creation of a guide for teaching financial academic
vocabulary to students that are not native speakers of English. The guide covers the
topics of vocabulary development and teaching, and demonstrates how to effectively
implement the Financial Academic Word List into a curriculum. The guide includes the
viii
Financial Academic Word List, recommended resources, and an intensive four-week
course in financial academic English. The course includes a syllabus, unit overviews, and
five lesson plans.
ix
CHAPTER I
INTRODUCTION
Without grammar very little can be conveyed,
without vocabulary nothing can be conveyed.
(Wilkins, Linguistics in Language Teaching)
Words are so embedded in our being that we often forget how central they are
to the human experience. Most of what we experience is influenced to a certain degree by
our language. ―A person who knows more words can speak, and even think, more
precisely about the world‖ (Stahl & Nagy, 2006, p. 5). Ultimately, our lexical capabilities
construct our perceptive reality.
The vital role vocabulary plays in learning a language is undeniable.
Numerous studies have shown high correlations between vocabulary and the various
measures of second language (L2) proficiency (e.g. Laufer, 1992, Albrechtsen, Haastrup,
& Henriksen, 2008). However, acquiring a large vocabulary is no easy task. In the
English language, it is estimated that there are around 114,000 word families, excluding
proper nouns (Goulden, Nation, & Read, 1990). It is absurd for anyone, including native
speakers, to attempt to learn every word in the language.
Many English language learners (ELLs) approach their learning with the goal
of achieving native-like fluency, although, even this proves to be an onerous task. Studies
show that the average vocabulary size is approximately 17,000 word families for
university students (Goulden, Nation & Read, 1990; D‘Anna, Zechmeister, & Hall,
1
2
1991), and 22,000 for retired adults (Zechmeister, Chronis, Cull, D‘Anna, & Healy,
1995). Fortunately, not all of the words in the English language are equally useful, as
some occur more frequently in communicative acts (Nation, 2001). A more reasonable
goal for ELLs is to acquire the amount of vocabulary necessary to enable the various
forms of communication that the learner will encounter (Schmitt, 2010).
For ELL students wishing to attend an American university, their focus should
be on the vocabulary that they will encounter the most regularly. As evidence suggests,
the number of word families required for spoken communication is much lower than
written communication (Schmitt, 2010). Hinkel (2002) identifies academic reading as a
major challenge for ELL students. Accordingly, ELL students should place a high
importance on the vocabulary needed for academic reading comprehension.
Purpose
The purpose of this project is to identify the most frequently used academic
vocabulary related to finance that students will typically encounter in finance courses at
an English speaking university and create vocabulary teaching materials that can be used
by course faculty, business trainers, or intensive language institutes. This project is the
application of previous educational degrees in financial management and services, and
linguistics, to current educational research in teaching English to speakers of other
languages.
For ELLs in a country where English is not the native language, the
acquisition of academic vocabulary is a difficult task. Vocabulary learning, or learning in
general, requires a high amount of repetition. ELLs in a foreign context do not have the
3
luxury of target language immersion. Moreover, their primary education is in a language
other than English, providing less exposure to academic vocabulary in English. Academic
vocabulary also occurs less frequently than general vocabulary, accounting for
approximately 10% of academic texts (Nation, 2001). Furthermore, the meanings of these
words are often highly dependent on the context in which they occur. As a result, the
ability to learn these words by reading alone is extremely difficult (Worthington &
Nation, 1996). Accordingly, the explicit instruction of academic vocabulary is
paramount.
Most university professors assume that students come into a university having
already mastered sufficient academic vocabulary (Farrell, 1990). However, many nonnative English educational settings devote a diminutive portion of class time to the
development of this knowledge (Scott, Jamieson-Noel, & Asselin 2003), leaving ELL
students unprepared for academic texts in English (Hinkel, 2002). Consequently,
academic vocabulary is one of the biggest learning difficulties that first year ELL
undergraduate students face (Li & Pemberton, 1994).
Scope
This project explores the topics of corpus linguistics, academic vocabulary,
and English for academic purposes to support the development of A Guide to Financial
Academic Vocabulary. The guide introduces and summarizes theory and best practices
for vocabulary development and teaching. It includes a sample financial academic
English course. Lastly, two versions of the Financial Academic Word List are included as
appendices. The following is a breakdown of the organization of this project:
4
 Chapter 1 introduces the topic and outlines its purpose, scope, significance,
limitations, and some definitions of terms. This project is limited to a preliminary and
general overview of the subjects.
 Chapter 2 consists of a review of relevant literature. The three areas of focus are
corpus linguistics, vocabulary development and teaching, and English for academic
purposes.
 Chapter 3 describes the methodology involved in creating the corpus, and the word
list. It also contains a description and discussion of the results from the research.
 Chapter 4 describes the purpose, rationale, and design of A Guide to Financial
Academic Vocabulary.
 Chapter 5 contains the discussion, pedagogical implications, and conclusions.
Suggestions for further development of materials are offered to instructors and
researchers.
 Appendix A contains A Guide to Financial Academic Vocabulary.
Significance
In 2004, over one million students were studying at English speaking
institutions outside of their home country (Hyland, 2006). The United States alone has
seen a 31% increase in international student enrollment in the last decade (Witherell &
Pittman, 2012). In fact, at the end of the 2012 school year, the number of international
students in the U.S. reached an all time high of 764,495 students (Witherell & Pittman,
2012). English for academic purposes (EAP) programs have been developed all over the
world to inculcate the tools necessary for success in university study.
5
With the internationalization of education, an EAP teacher will often face a
classroom full of learners with diverse needs and goals. Accordingly, the decision of
which vocabulary words to teach in an EAP classroom can prove to be a major dilemma
for EAP teachers. To aid the selection of academic vocabulary, many studies have been
conducted to produce helpful academic word lists. These include the University Word
List (Xue & Nation, 1984), the Academic Word List (AWL) (Coxhead, 2000), among
others. These lists range across a wide variety of academic disciplines. However, the
numerous discourses associated with different academic disciplines undermine these lists
(Hyland & Tse, 2007). Furthermore, Mudraya (2004) concludes that for language
learning and teaching, smaller corpora may be of more use, as they represent the specific
language relevant to the needs of the learner. This leads to the assumption that discipline
specific word lists would be beneficial. Currently, no such academic word list exists for
finance.
Limitations
As with any research, there are limitations to this project. Initially, the project
was to analyze two textbooks from five separate financial disciplines. However, due to
monetary, accessibility, and time constraints, the project was limited to one text book
from three separate areas of finance. Therefore, the word list will need to be rechecked
against a larger corpus. Additionally, the list was based on frequency and range. A
follow-up study may be conducted to provide a deeper lexical and discourse analysis for
the entire corpus.
6
Definitions
 Academic vocabulary: Words that occur frequently across academic texts.
 Corpus: ―A large collection of naturally occurring texts, including both written and
transcribed spoken texts‖ (Conrad, 2005, p. 395).
 General vocabulary: The words necessary for basic everyday communication.
 Low-frequency vocabulary: Words that cannot be classified as general, academic,
or technical.
 Technical vocabulary: Words that occur exclusively in a single field or discipline.
 Word family: ―The base word, plus its inflected forms and transparent derivations,
including all closely related affixed forms as well as the stem‘s most frequent, productive
and regular prefixes, suffixes and, perceived transparency‖ (Bauer & Nation, 1993, p.
447).
Acronyms Frequently Used
 AWL: Academic Word List (Coxhead, 2000).
 EAP: English for academic purposes.
 EGAP: English for general academic purposes.
 EIS: Effective instructional sequence.
 ELL: English language learner.
 ELT: English language teacher.
 ESAP: English for specific academic purposes.
 FAWL: Financial Academic Word List.
 GSL: General Service List (West, 1953).
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 L1: First language.
 L2: Second language.
 TBLT: Task-based language teaching.
CHAPTER II
REVIEW OF RELATED LITERATURE
Introduction
This chapter contains a review of the literature relevant to the construction of
A Guide to Financial Academic Vocabulary. The three areas of focus are corpus
linguistics, vocabulary, and English for academic purposes.
Corpus Linguistics
Corpus linguistics is regarded as a methodological approach that employs both
qualitative and quantitative techniques to empirically analyze a corpus (Biber, Reppen, &
Friginal, 2010). In essence, it is the study of language represented in a collection of texts
(McCarthy & Sampson, 2005). A corpus, by its simplest definition, is ―a large collection
of naturally occurring texts, including both written and transcribed spoken texts‖
(Conrad, 2005, p. 395). Corpus-based studies have identified numerous distinctive
linguistic patterns across discourses (Paquot, 2010). Particularly, corpus-based studies
have had the largest influence on vocabulary studies, resulting in numerous pedagogical
applications (Biber, Reppen, & Friginal, 2010). Accordingly, this section of the literature
review will discuss corpus formation and analysis, and provide an overview of current
word lists.
8
9
Corpus Formation
The current use of the term corpus refers to the electronic format. However,
seminal studies were originally conducted longhand. Accordingly, credit is due to the
pioneers of corpus linguistics as the pre-electronic analysis of corpora was a tediously
monumental task, to say the least. The formation of a corpus is generally understood to
be directed by its intended use, aiming to be as representative of the target language as
possible (Ludeling & Kyto, 2008). For example, if a researcher wants to examine the role
of the accusative case in medical articles, he/she should develop a corpus consisting of
various articles from medical journals, not excerpts from text books or lectures, and
definitely not articles from engineering journals. Ideally, a corpus should be as large as
possible, although this is generally unrealistic. External factors, such as copyright,
software, and text availability, always result in a compromise between the ideal and the
plausible (Ludeling & Kyto, 2008). Regardless, the more representative a corpus is the
more reliable and generalizable the results will be (Conrad, 2005).
Once texts have been selected for inclusion in a corpus design, three methods
are used to turn them into a usable form: manually typing, scanning, and obtaining them
electronically (Ludeling & Kyto, 2008). Manually typing large quantities of text is a
tedious and time-consuming process which can usually be avoided. Unfortunately, this
usually unavoidable if the text is handwritten or when dealing with speech transcription.
Scanning texts is also a time consuming process, and is used when a text is not in
electronic form. This is typically a multi-step process that involves scanning, the use of
text recognition software, and proofing. The ideal process for preparing texts is to obtain
10
the text in electronic format, as this bypasses the tedious input stage. Once a corpus is
created, it is relatively useless until further analysis.
Corpus Analysis
Corpus based studies are guided by two research goals: to describe linguistic
features, and to describe overall register features (Biber, Conrad, & Reppen, 1994).
Studies in linguistic features seek to understand the role that vocabulary and grammar
influence language use, while register feature studies aim to describe the discourse
register as a whole. Depending on the purpose of the research, the specific focus of a
corpus analysis can vary significantly.
Research on the linguistic features of corpora can be accomplished in a variety
of ways, most typically adopting either a lexical or grammatical focus. Early lexical
studies used corpora to determine word frequency in a particular register, often resulting
in a word list. (A few of these lists will be discussed later.) These lists allow researchers
to compare word frequencies across various registers (e.g. Francis & Kucera, 1982).
Lexical analysis also goes beyond individual words. Numerous studies have examined
lexical bundles, collocations, and idioms. For example, Partington (1998) studied the
effects of varying collocational associations on synonym interchangeability. Beyond
lexical analysis, corpora can also be used to examine grammatical features. For example,
Fortanet (2004) studied the pronoun we in university lectures. Beyond an individual unit,
grammatical analysis has produced research in grammatical classes (e.g. Romer, 2005),
clauses (Collins, 1991), and syntax (Ferguson, 2001), among other features.
Studies have also gone beyond specific linguistic features to focus on the
overall description of the register. Traditional studies of this type concentrate on either
11
spoken or written discourse; however, written registers have received noticeably more
attention. Studies that attempt to describe patterns across multiple registers are referred to
as a multidimensional analysis (Biber, Reppen, & Friginal, 2010). Seminal studies by
Biber (1986, 1988) examined 67 linguistic features across the spoken and written
registers of general English. Furthermore, multidimensional analysis studies have also
been carried out in languages other than English, allowing cross-linguistic comparisons
(e.g Jang, 1998).
Current Word Lists
Assuming that frequency and coverage are crucial in selecting vocabulary, a
corpus proves to be a valuable tool. However, it is unrealistic for educators to scrutinize
large corpora to select relevant vocabulary for their students. Fortunately, numerous
researchers have created word lists developed from various corpora.
The first word list was West‘s GSL (1953), which identified the 2,000 most
commonly used word families in the English language. Beyond high frequency
vocabulary, many researchers have undertaken the study of academic corpora. This has
resulted in numerous word lists designed to aid English language teachers (ELTs) and to
meet the specific needs of students in higher educational settings. Campion and Elley
(1971) developed a corpus from 23 textbooks, 19 published lectures, and a selection of
university papers. The corpus contained 301,800 running words. Praninkas (1972)
examined 10 first-year science and art textbooks, which contained 272,000 running
words. Lynn (1973) collected 10,000 annotations from 52 textbooks and 4 classroom
handouts from the disciplines of accounting, business administration, and economics. The
result was a list that contained the 197 word families. Ghadessy (1979) compiled data
12
from 20 textbooks from chemistry, biology and physics. This corpus consisted of 478,700
running words. The result was a list of 795 lexical items. Of these four studies, two
methods of selection for academic word lists were used. Lynn (1973) and Ghadessy
(1979) selected frequently annotated words in the texts. Campion and Elley (1971) and
Praninskas (1972) both used text frequency in the word selection. Xue and Nation (1984)
combined and revised these lists to create the University Word List. This list contains
about 800 words across a wide range of academic texts. However, Coxhead (2000)
argued that the AWL not only lacked consistent selection principles, but also identified
similar weaknesses with the prior work in which it was based. As a result, Coxhead
developed a corpus containing 3.5 million words from different academic journals and
university textbooks in the disciplines of arts, commerce, law and natural science. This
effort resulted in the Academic Word List (AWL) (Coxhead, 2000). The list contains
approximately 570 word families and accounts for roughly 10% of the selected academic
texts (Wang, Liang, & Ge, 2008). Containing fewer words and providing more coverage,
the AWL is now a widely accepted and cited list (Wang, Liang, & Ge, 2008).
The unique discourse of a single discipline, however, undermines these lists
(Highland & Tse, 2007). A study conducted by Chen and Ge (2007) analyzed the
distribution of the AWL in various medical research articles. They concluded that
although it had high text coverage, the list was far from representing the most frequent
medical academic vocabulary. This leads to the assumption that discipline specific corpus
should be created and analyzed. Currently, only a few studies have produced discipline
specific academic word lists from such a corpus. Mudraya (2006) compiled the Student
Engineering English Engineering Corpus that contained approximately 2,000,000 running
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words spanning 13 different engineering textbooks. The result was a 1,260 word family
list that included the most frequently encountered academic vocabulary across basic
engineering disciplines. Another study done by Wang, Liang, and Ge (2008) resulted in a
Medical Academic Word List. A corpus of 1,093,011 running words was compiled from
288 medical research articles across 32 related areas. The result was a list of 623 word
families.
Vocabulary
There is no denying the ubiquitous nature of vocabulary in language
acquisition. Vocabulary is directly related to all facets of both productive and receptive
language ability, the single largest factor affecting successful reading comprehension
(Alderson, 2005; Laufer, 1992). Explicit instruction in vocabulary is paramount in
countries where English is not the native language, as students have significantly less
exposure to the target language. In order to effectively teach vocabulary it is important to
understand the nature of vocabulary, how vocabulary is learned, and appropriate teaching
methods.
Vocabulary Size and Threshold
As the dissemination of information in academia is predominately through
text, successful reading ability is paramount. Successful text comprehension is only
possible if an individual understands the text‘s vocabulary (Laufer, 1997). If a learner
possesses insufficient vocabulary, he/she will not only be unable to employ successful L1
reading strategies, but will regress to inefficient reading strategies (Clarke,1980; Laufer,
1992). This leads to the assumption that a certain vocabulary threshold must be reached
14
before L1 reading strategies can be properly utilized in L2 (Carrell, 1991; Laufer, 1997).
Various studies have explored the concept of vocabulary threshold. Early
threshold studies focused on lexical coverage and reading comprehension. A seminal
study by Laufer (1989) found that 95% text coverage was necessary for adequate
comprehension. A similar study by Hu and Nation (2000) compared lexical coverage
rates among college ESL learners. The study found that no student could comprehend the
text with 80% lexical coverage, and only a few could at the 95% level. They concluded
that 98% coverage is necessary for adequate comprehension (Hu & Nation, 2000). On the
other hand, a study by Kurnia (2003) found that only a few participants gained
comprehension at the 98% level. These conflicting results indicate that a high lexical
coverage does not necessarily result in comprehension, nor does it make it easy (Carver,
1994). Nevertheless, it is hard to argue that knowing a higher percentage of the words in
the given text will facilitate comprehension. Accordingly, the 98% lexical coverage
figure is widely accepted and utilized in numerous studies.
Another focus of threshold studies examined vocabulary size and reading
comprehension. A study by Laufer (1992) found that learners with a larger vocabulary
scored higher on reading comprehension tests. She concluded that knowledge of 3,000
word families is necessary for adequate comprehension. However, her study employed
the 95% baseline based on her earlier work. Nation (2006) argues that the knowledge of
approximately 8,000 word families, or 28,000 words, is necessary to read a variety of
authentic texts, assuming 98% coverage is necessary. A more recent study (Laufer &
Ravenhorst-Kalovski, 2010) used more rigorous research tools than previous studies, but
found results similar to both Hu and Nation (2000) and Nation (2006). It is safe to say
15
that a learner needs to know a lot of words in order to successfully comprehend a text.
What these studies do not address, however, are the words that a learner needs to know to
achieve successful comprehension.
Vocabulary Types
Given the size of the English language, deciding which words to learn is
crucial for ELLs, as well as English Language Teachers (ELTs). Results from previously
mentioned corpus-based studies have shown that certain words occur more frequently
than others. This idea has led various researchers to classify vocabulary according to
type, primarily centered on the concepts of frequency and range. In other words, they
examined how often and in how many places does a word occur. The classification of
vocabulary types can be achieved through an infinite number of possibilities, depending
on the intended purpose. Generally speaking, vocabulary is viewed as either general or
peripheral (Marquez, 2007). However, a clearer distinction is necessary because different
types of vocabulary require different teaching and learning approaches (Nation & Hwang,
1995). The general consensus among current research highlights four vocabulary types:
general vocabulary, academic, technical, and low-frequency.
General vocabulary often goes by different names: basic vocabulary (Beck,
McKeown, & Kucan, 2002), high frequency vocabulary (Nation & Hwang, 1995),
nuclear vocabulary (Stubbs, 1986), and general service words (West, 1953). Regardless
of the title, general vocabulary is typically viewed as the vocabulary necessary for basic
everyday communication. However, this definition gives no real insight into the true
nature of general vocabulary, as the concept of everyday can vastly vary from one person
to another. Schmitt (2010) describes general vocabulary as a vague concept, knowing no
16
agreeable limits amongst researchers. In most instances, general vocabulary is seen as
synonymous with high-frequency vocabulary (Nation, 2001). In other words, general
vocabulary is seen as the most commonly used words in a given language. West (1953)
identified the 2,000 of the most highly used words in English language, resulting in the
General Service List (GSL). Research conducted decades later showed that the GSL still
had 75% coverage of fiction texts (Hwang, 1989) and 90% coverage of non-fiction texts
(Hirsch, 1993). This shows that the most frequent and important words in English rarely
change over time (Schmitt, 2010). Accordingly, the GSL is still utilized as the benchmark
for general vocabulary in many lexical studies (e.g. Coxhead, 2000; Wang, Liang, & Ge,
2008). The specific constraints of general vocabulary may be debatable, but there is a
broad consensus that there is a general vocabulary that must form the foundation of
vocabulary teaching (Stubbs, 1986, Nation & Hwang, 1995). Beyond this foundation,
agreements on categorical divisions are noticeably more varied.
Nation and Waring (1997) argue that intermediate and advanced learners
should shift their focus to less frequent vocabulary. Outside general vocabulary, words
are typically identified as either academic or technical. Nation (2006) estimates that
academic vocabulary accounts for 10% of an academic text, while technical vocabulary
accounts for 5%. Martin (1976) emphasized a clear distinction between academic and
technical vocabulary; however, several contrasting definitions prove otherwise.
Technical vocabulary is confined to a specific domain, rarely occurring
elsewhere. Specialists in the field utilize their knowledge and intuition to identify and
define relevant technical terms (Chung & Nation, 2004). However, the subjectivity in this
process results in varying degrees of technicalness (Chung & Nation, 2004). One way to
17
avoid this inconsistency is to use a predesigned rating scale to determine the degree of
field relatedness, such as Nagy and Anderson‘s (1984) six-point semantic similarity scale
(Chung & Nation, 2004) or Nation‘s (2001) technical categories. Ultimately, there are a
number of words agreed upon by researchers that are identified with a field, and form a
technical dictionary (Chung & Nation, 2004). Accordingly, technical vocabulary is
usually covered in the particular language learning situation, whether in a content
classroom or through on-the-job training.
Academic vocabulary (Nation, 1990), often referred to as semi-technical
vocabulary (Li & Pemberton, 1994), or non-technical vocabulary (Cohen, et al., as cited
in Paquot, 2010), occurs frequently across academic texts (Coxhead, 2000). Coxhead
(2000) specifies academic vocabulary as a general term that identifies lexical items
frequently used across the majority, if not all, of the academic disciplines. However,
Hyland and Tse (2007) state that there are numerous discourses across disciplines. In
other words, each discipline has a specific language that it utilizes. The latter definition
may seem similar to the notion of technical vocabulary. In fact, it does to a certain
degree, as some researchers identify some technical vocabulary as academic, depending
on the context (Schmitt, 2010). Accordingly, the separation lies with the frequency
characteristic. Technical vocabulary is only frequent in a particular field. Academic
vocabulary is frequent across disciplines, but may occur more often and take on a
different meaning in a particular discipline. This has led some researchers to identify the
division as general academic versus domain-specific academic vocabulary, rather than
technical versus academic (Baumann & Graves, 2010). Nevertheless, the contextual,
often abstract, nature of academic vocabulary, or general academic vocabulary, provides
18
a major source of difficulty in acquisition (Townsend, 2009; Hiebert & Lubliner, 2008).
Similar to technical vocabulary, academic vocabulary occurs too infrequently for
incidental acquisition (Worthington & Nation, 1996). To complicate matters, academic
vocabulary is usually skipped in the content classroom, as most subject teachers assume
their students already know these words (Farrell, 1990). Accordingly, academic
vocabulary is identified as one of the biggest learning difficulties for a first year
undergraduate student (Nation & Waring, 1997).
All words that cannot be classified as general, technical, or academic are
labeled as low-frequency vocabulary. This group is the largest of all vocabulary types,
but these words are rarely encountered in the language (Nation, 2001). Consequently,
teaching these words in the classroom is inefficient (Nation & Newton, 1997). Instead,
learners should be equipped with learning strategies to infer meaning (Nation & Newton,
1997).
Vocabulary Knowledge
It is clear that ELLs need to learn a large number of words in order to
effectively communicate in English. This is a difficult task; however, learners must also
develop a rich understanding of each word. This is often referred to as vocabulary depth.
An important division in the categorization of word knowledge is between
receptive and productive ability. Typically, receptive word knowledge precedes
productive ability; however, the precise connection is unclear. Various studies have
claimed that anywhere from 16%-92% of receptive vocabulary knowledge is known
productively (Melka, 1997; Laufer, 2005). Nonetheless, Melka (1997) describes the
process as a gradual shift from receptive to productive ability. This idea has resulted in
19
various scales that attempt to assess vocabulary knowledge along a continuum. Well
known scales include The Vocabulary Knowledge Scale (VKS) (Paribakht & Wesche,
1997) and the Schmitt and Zimmerman Scale (Schmitt & Zimmerman, 2002). The VKS
contains five levels of word knowledge, ranging from ―I do not remember seeing this
word,‖ to ―I recognize this word‖, to ―I can use this word in a sentence (Paribakht &
Wesche, 1997).‖ The latter requires a demonstration of knowledge, i.e. creating a
sentence. The Schmitt and Zimmerman Scale has four levels, ranging from ―I don‘t know
the word,‖ to ―I know this word and can use it in my own speaking and writing.‖
However, as Schmitt (2010) points out, researchers are not exactly sure how vocabulary
knowledge advances, creating issues in the development of valid scale. Nonetheless, a
scale can have valuable pedagogical advantages, such as a simple, efficient assessment
method. There are obvious flaws within the scale method, particularly interpretive
variability. However, successful implementation can be achieved with proper
understanding of the inherent strengths and weaknesses (Read, 2000; Schmitt, 2005).
Another approach to categorizing vocabulary knowledge is the dimensions
approach. The dimensions approach aims to identify the types of word knowledge an
individual can have about a word and quantifying successful mastery (Schmitt, 2010).
The most prominent and commonly utilized dimensions approach was created by Nation
(2001), who ―categorizes word knowledge into three areas: form, meaning, and use‖ (p.
27). Knowing a word‘s form involves written, spoken, and morphological information.
Knowing a word‘s meaning involves represented concepts, referents and associations.
Use involves grammatical functions, collocations and constraints. Furthermore, each of
these categories measure receptive and productive aspects. These distinctions yield
20
important insights into the teaching and learning of vocabulary. The foremost is the
variability across individuals, as two people can know different aspects of a word and yet
still ―know‖ the word. This attests to the incremental nature of vocabulary and indicates a
degree of independence among the various aspects, leading to the conclusion that the
various aspects of word knowledge are acquired at various rates and sequences (Durso &
Shore, 1998; Nagy & Scott, 2000).
These two perspectives attempt to describe a highly complex cognitive
process. Citing a study by Henriksen (1999), Schmitt (2010) concludes that overall
vocabulary knowledge occurs along a continuum, as do all aspects of word knowledge.
As a result, a combination of the two perspectives provides a better picture of the
complex process, while facilitating assessment and instruction (Schmitt, 2010).
Vocabulary Learning
Learners not only need to know a lot of words, but a lot about each word. The
process is neither simple nor quick. Nagy and Scott (2000) describe learning a word as an
accumulation of infinitesimally small steps. The development of word knowledge is
accomplished both incidentally, and intentionally.
Incidental Vocabulary Learning. Incidental vocabulary learning is the
acquisition of words as a by-product of an activity other than learning explicit features.
Numerous studies have shown that L2 words are acquired incidentally through reading
(e.g., Day, Omura, & Hiramatsu, 1991; Waring & Takaki, 2003; Horst, 2005).
Research on the effectiveness of incidental acquisition has produced
conflicting results. A study by Horst, Cobb, and Meara (1998) found that 1 out of every
12 new words were learned. Moreover, they found that 1 out 5 new words were acquired
21
if the learning persisted over 10 days (Horst, Cobb, & Meara, 1998). Pigada and Schmitt
(2006) found that 1 out of every 1.5 words previously known was effectively enhanced
by extensive reading. These results signal complexity in incidental learning through
reading.
A major aspect of incidental vocabulary learning through reading is how
many times the word is encountered. This has led various researchers to determine how
many exposures are required for acquisition. Waring and Takaki (2003) claim that at least
8 repetitions are required for a 50 percent chance of recognition. On the other hand,
Pigada and Schmitt (2006) found that some learners failed to learn word meanings after
over 20 exposures. More encounters with a word are obviously better than fewer;
however, identifying the minimum threshold is difficult due to the numerous variables
affecting acquisition. Accordingly, encounters alone don‘t automatically result in
acquisition; subtle changes must be recognized, and learners must be willing to extend
existing knowledge (Koda, 2005). Moreover, in order to develop all aspects of word
knowledge, learners need to encounter words in a variety of contexts (Schmitt, 2008).
The combination of repetition and quality of encounters lead to more
significant increases in word knowledge (Webb, 2007). This can be significantly aided
through extensive reading. Extensive reading has been found not only to increase
vocabulary levels, but also reading speeds, attitudes towards reading, and overall
language proficiency (Elley, 1991; Al-Homound, & Schmitt, 2009; Renandya, Rajan, &
Jacobs, 1999). To infer word meanings from a given context, a learner must utilize the
contextual information to derive meaning. For example, a word‘s grammatical class,
collocations, and syntax position can be used to derive a word‘s meaning. However,
22
inferring word meanings in a variety of contexts often proves difficult. Sometimes the
context surrounding a given word is uninformative, or worse, misleading (Beck,
McKeown, & McCaslin, 1983). Accordingly, it is also beneficial to gain knowledge of
word features through intentional learning.
Intentional Vocabulary Learning. Intentional vocabulary learning involves
explicitly learning a word‘s features. Koda (2005) states that this type of learning
attempts to establish connections between a word‘s symbol, meaning, sound, and L1
equivalents. He argues that the more connections there are among these features, the
more likely the word will be assimilated into existing knowledge. Moreover, if this
approach is applied to Nation‘s (2001) model, more numerous and intricate connections
can be established.
A common intentional learning strategy is definition-based. When
encountered with an unknown word, many ELLs simply look up the definition in a
dictionary. Similar, ELTs usually provide a few general definitions when they first
introduce a word to students. While this may provide a solid foundation, definitions
provide no information on how to use the word (Nagy & Scott, 2000). This leads many
students to rely on one aspect of a word‘s semantic properties, often hindering reading
ability (McKeown, 1993; Scott & Nagy, 1997). In order to develop all aspects of word
knowledge, it is necessary that learners encounter words in a variety of contexts, and
connect this new information to existing knowledge (Koda, 2005).
Another common intentional learning strategy is the identification of a word‘s
morphological constituents, sometimes referred to as intraword awareness (Koda, 2005)
or word consciousness (Stahl & Nagy, 2006). A study by Nagy and Anderson (1984)
23
found that approximately 75% of newly encountered words in elementary school books
are morphologically complex. Even at this low-level of education, a large number of
words can be learned solely from morphological knowledge.
L1 Influence. For ELLs, L1 plays an obvious role in L2 vocabulary
acquisition. Most L2 vocabulary learning involves relabeling, which simply applies a L2
word to a L1 concept (Schmitt, 2010). However, as McCarthy (1990) observes, it is
unlikely that any exact synonyms occur across languages. This leads to the assumption
that relabeling may serve as an effective foundation, but more advanced word knowledge
requires adherence to the subtle differences present in various contexts. Additionally,
differences between L1 and L2 play a major role.
A major factor influencing L2 vocabulary acquisition is the degree of
similarity between L1 and L2. L2 words that share phonological and orthographical
characteristics with L1 words are referred to as cognates (deGroot, 2006). Non-cognate
L2 vocabulary learning, such as a Chinese student learning English, poses obvious
difficulties. Conversely, it seems that cognates should facilitate L2 vocabulary learning.
For example, hotel in English and el hotel in Spanish both refer to a place that provides
rooms for overnight guests. An English speaker learning Spanish should have no
problems learning el hotel. Research has shown the benefits of cognates; however, they
have also been found to hinder learning (Schmitt, 2010). Assuming no exact synonyms
exist, cognates take on a degree of deceptiveness (Granger, 1993). These words are often
referred to as false cognates, and may create confusion for the learner. For example,
actual in English means existing in reality, while actual in Spanish means present or
24
current. The benefits of cognates are apparent, but they should be taught in context to
minimize interpretive challenges (Lalor & Kirsner, 2001).
Vocabulary Teaching
There are many approaches to teaching vocabulary, including the lexical
phrase method, theme based, and the communicative language method, among others.
However, McBain (2011) suggests that the best approach is an integration of multiple
approaches. Regardless of the approach, vocabulary teaching needs to adhere to
engagement, attrition and motivation.
When teaching vocabulary, it is necessary to provide activities that promote
engagement. The more attention and manipulation that is given to a word, the more likely
that it will be learned (Craik & Lockhart, 1972). A study by Hulstijn and Laufer (2001)
tested the effects of task-induced involvement load on vocabulary retention in EFL
learners. The results showed that vocabulary retention was directly related to the
involvement load of the task.
The crucial role that motivation plays in any learning process is rather
obvious. Motivation has long been seen as a crucial factor in language learning (Zheng,
2012). It is difficult to teach a student anything if he/she does not want to learn it. Not
only is it important for a teacher to get students excited to learn in the class, but to
inculcate a desire to learn on their own outside of class. Various studies have highlighted
a correlation between motivation and successful autonomous language learning (e.g. Gao,
2010). Furthermore, teaching students successful learning strategies will provide them
with the ability to learn words with direct instructions.
25
English for Academic Purposes
In the last decade, American universities have seen a tremendous increase in
international student enrollment (Witherell & Pittman, 2012). This internationalization of
education has led to a significant increase in EAP programs. These programs help prepare
students for the language that they will encounter in English speaking institutions. If a
student is not linguistically prepared, he/she will have a difficult time meeting the
complex cognitive demands at this level of education. A major decision for EAP teachers
is the decision of which language features to focus on in the classroom. This choice is
heavily influenced by whether EAP is viewed as a pragmatic or critical discipline.
The battle as to whether EAP is a pragmatic or critical discipline is still a
major issue in current studies. The critical approach is founded on the common core
hypothesis, which claims that there is a common core of grammatical and lexical items
underlying any linguistic register (Bloor & Bloor, 1986). This broad approach aims to
develop competence in the skills required in target contexts, rather than a specific
language (Hutchinson & Waters, 1987). Many researchers have extended this
commonality notion to EAP, promoting a single literacy in academic language (Coxhead,
2000; Xue & Nation, 1984). This view, often referred to as EGAP (English for General
Academic Purposes), aims to equip students with a foundation of skills and language that
is common to all academic disciplines (Hyland, 2006). As EAP strives to prepare
students for study in a wide variety of disciplines, an EGAP approach seems efficient.
However, research has identified significant differences across academic disciplines (e.g.
Candlin & Plum, 1999; Highland & Tse, 2007), ultimately undermining the value of a
single literacy in academia (Highland & Tse, 2007). Notwithstanding, researchers have
26
not completely negated any underlying skills and language features between academic
disciplines.
While researchers in discipline specificity agree that generalizable features do
exist, they have concluded that a one-size-fits-all approach ignores the idea of contextual
meaning (Hyland, 2006). As Swales, (1990) concluded, a better approach would be to
teach language skills and discipline content concurrently, or English for Specific
Academic Purposes (ESAP) (Hyland, 2006). This proves to be difficult in an EAP
classroom with diverse educational goals, requiring the teacher to be knowledgeable of
specific language features and the content of unfamiliar disciplines. To combat this,
researchers have developed teaching materials to aid EAP teachers in the selection of
authentic language features. Further studies in academic corpus analysis are required not
only to further knowledge of academic discourse, but also to develop materials that will
facilitate teaching in a diverse environment.
Conclusion
The review of the literature has identified the following gaps in the
highlighted fields of research. Research on vocabulary has shown that ELLs are
unprepared for academic vocabulary, particularly in higher educational settings.
Moreover, current research on vocabulary lists has identified the need for discipline
specific lists of academic vocabulary. Lastly, the fact that vocabulary instruction receives
minimal attention in the EFL classroom leads to the assumption that current ELTs either
do not understand the importance of vocabulary, or do not have the means necessary for
27
efficient development. This project will facilitate the teaching of financial academic
vocabulary.
CHAPTER III
THE FINANICAL ACADEMIC
WORD LIST
Introduction
The development of an academic word list containing the most frequently
used academic vocabulary in university finance textbooks was a multistep process. It first
required the selection and acquisition of authentic texts to be represented in the corpus.
Once the texts were obtained, they needed to be compiled into a corpus that was
compatible with a lexical analysis program. The final word list was developed using the
lexical software, and predetermined word selection parameters.
Development
Text Selection
Before any work could be done, decisions about the size and
representativeness of the corpus had to be made. The process began by contacting the 17
California State University campuses that offer a degree in finance. An email was sent to
the heads of each finance department, asking for a list of textbooks used by their finance
professors. Out of the 17 departments contacted, 11 responded, and 8 had the ability to
accommodate the request. From the responses, a list of 68 textbooks was created. The
goal of using actual university text books was chosen to give an authentic representation
28
29
of the financial academic vocabulary.
The next decision to be made was to determine the various sub-disciplines to
be represented. From the available list, 10 sub-disciplines were selected, based on their
appearance in the text. These included: corporate finance, estate planning, financial
insurance, international finance, investments, financial management, financial markets,
financial planning, real estate finance, and risk management. Then, for each subdiscipline, the two texts that best represented the particular discipline were chosen.
After the final text list was compiled, the act of acquiring the texts was the
next issue. After contacting the publishing companies and weighing text costs, acquired
the entire text list proved difficult. Fortunately, a deal was worked out a deal McGrawHill Publishing and access was gained to their texts. However, this resulted in a
substantial reduction of the text list. Based on the texts available, it was decided that the
sub-disciples of corporate finance, international finance, and financial investments were
to be represented. Due to time constraints and text availability, one textbook was
randomly chosen to represent each of the sub-disciplines.
Corpus Establishment
The lexical software program selected was WordSmith 6 (Scott, 2012). This
program required the textbooks to be converted into a .txt document. To accomplish this,
the texts needed to be transferred to Windows Notepad. Because the texts were available
only in MCG‘s CourseSmart e-reader, a considerable amount of work needed to be done.
The first step in the process required a simple copy and paste into the Notepad
application. Although this seemed to be a straightforward and quick procedure, program
restrictions turned this into an arduous and extensive process. It was only possible to
30
copy and paste one page at a time. On many instances, multiple copy and pastes were
required for a single page. Each book was copied from the table of contents to the index,
excluding the bibliography.
Once all of the texts were entered into Notepad, formatting issues needed to
be corrected. These issues were numerous, and included problems like: changing end of
page word hyphenations to single words, unnecessary word combinations (―the book‖
pasted as ―thebook‖), and straightforward program paste errors (―financially pasted as ―fi
nancially‖).
The last step was to remove compromising place holders. These included
things such as: replacing acronyms with the expanded phrase (ROA to return on assets),
and removing multilevel list headings (a., b., I., II., etc.). The final corpus was named the
Financial Academic Corpus.
Word List Development
Once the Financial Academic Corpus was entered into the computer software,
the program computed individual word frequencies, and listed them alphabetically, as
well as by frequency. The next step was to manually combine the lexical entries into
word families. Coxhead (2000) states that ‗‗comprehending regularly inflected or derived
members of a family does not require much more effort by learners if they know the base
word and if they have control of basic word-building processes‖ (p. 218). This study
utilizes the definition provided by Bauer and Nation (1993), which defines a word family
as ―The base word, plus its inflected forms and transparent derivations, including all
closely related affixed forms as well as the stem‘s most frequent, productive and regular
prefixes, suffixes and, perceived transparency ‖ (p. 447).
31
The criteria for the FAWL were adapted from those used by Coxhead (2000)
in the development of the AWL. Coxhead‘s (2000) criterion has served as a foundation
for a variety of reputable word lists (e.g. Wang, Liang, & Ge, 2008). The criteria chosen
for the FAWL are as follows:
 Specialized occurrence: The word families must be outside of the first 2,000 most
frequently occurring words of English, as represented by the GSL (1953).
 Range: A member of a word family must occur in all three texts.
 Frequency: Word families must have greater than 100 occurrences.
The only difference between the current study and Coxhead‘s study is the inclusion
criteria. In her study, a 50% inclusion rate was set. Due to the limited size of the
Financial Corpus, the current study applied a 100% inclusion rate. The parameters
mentioned previously were then applied to identify possible word families to be included
in the list. The last step was to remove the words deemed too technical. The final list was
named the Financial Academic Word List.
Results
There are 815,550 running words in the Financial Academic Corpus. The
elimination of the GSL resulted in a removal of 605,458 running words, accounting for
74.24% of the Financial Corpus. For breakdowns of individual texts, see Table 1.0. After
the removal of technical vocabulary (e.g. mortgage, annuity, arbitrage), 248 word
families occurred over 100 times in all three texts. These 248 word families resulted in
the FAWL. The average text coverage for the FAWL was 13.34%. The following passage
was selected randomly from one of the textbooks from the corpus The words in the
32
Table 1
Corpus Coverage of AWL, FAWL, and GSL
Text 1
Financial Academic Corpus
Running Words
Academic Word List
Running Words
Word Families
Text Coverage
Text 2
Text 3
Total
206,967 352,911 255,672 815,550
19,632
570
9.49%
49,287
570
13.97%
29,575
570
11.57%
98,494
570
12.08%
Financial Academic Word List
Running Words
Word Families
Text Coverage
26,484
248
12.80%
51,945
248
14.72%
31,748 110,177
248
248
12.42% 13.51%
General Service List
Running Words
Word Families
Text Coverage
161,603 258,871 184,984 605,458
2,000
2,000
2,000
2,000
78.08% 73.35% 72.35% 74.24%
GSL & FAWL Text Coverage
90.88% 88.07% 84.77% 87.75%
FAWL are underlined.
An alternative way of calculating present values for multiple future cash flows
is to discount back to the present one period at a time. To illustrate, suppose we had
an investment that was going to pay $1,000 at the end of every year for the next five
years. To find the present value, we could discount each $1,000 back to the present
separately and then add the results up. Figure 5.5 illustrates this approach for a 6
percent discount rate. As shown, the answer is $4,212.37 (ignoring a small rounding
error). (Ross, Westerfield, & Jordan, 2011, p.403).
This gives a visual representation of the academic words used in such textbooks. Out of
the 91 words used in this paragraph, 11 (12.09%) of them are on the FAWL.
The invest word family was the most commonly used family in the FAWL,
occurring 8,101 times. The most frequently used word was percent, occurring 4,306
33
times. The least frequent word family was rely, occurring 101 times. The entire FAWL
listed alphabetically and by frequency can be found in Appendix A.
Discussion
The results of the study indicate a lexical distinctiveness in financial
textbooks, as the texts were found to contain fewer general service words, more proper
nouns, and a higher percentage of academic words than typical academic texts.
According to Nation‘s (2006) estimates, a given academic text is composed of 80%
general vocabulary, 10% academic vocabulary, 5% technical vocabulary, and 5% low
frequency vocabulary. At 74.24%, the GSL provides below average text coverage for the
financial textbooks. On the other hand, the FAWL provides an above average text
coverage of 13.51%. Moreover, the 50 most frequently used word families in the FAWL
accounted for 8.23% of the entire corpus.
The sole focus of this study was academic vocabulary. As a result, the
breakdown of technical or low-frequency vocabulary is not present in the data. However,
based on observation the texts seemed to contain a significant number of proper nouns.
As the general nature of finance revolves around companies, people, and products, it
seems likely the text would contain a high number of proper nouns. However, the claim
is purely speculative.
According to Coxhead (2000), the AWL should account for approximately
10% of a given academic text. This estimate holds true for the textbooks utilized in this
study. Moreover, the majority of the FAWL is also present in the AWL. However, the
FAWL contains 322 fewer word families (2,393 words) and provides 1.43% more text
34
coverage than the AWL. Furthermore, the FAWL utilizes a smaller number of academic
words more frequently. This leads to the conclusion that although the AWL provides high
text coverage, it is not the most efficient measure of the most frequently utilized words in
finance textbooks.
CHAPTER IV
A GUIDE TO FINANCIAL ACADEMIC
VOCABULARY
Purpose
The purpose of this guide is to partially alleviate the burdens placed on EAP
teachers. The decision as to which vocabulary words to teach in an EAP classroom can
prove to be a major dilemma for EAP teachers. This guide includes the Financial
Academic Word List, which contains the most frequently used academic vocabulary
related to finance that students will typically encounter in finance courses at an English
speaking university. In order to facilitate efficient instruction of the FAWL, the guide
provides an overview of the best practices in vocabulary learning and teaching.
Additionally, the guide contains a sample financial academic English course to model
how this information can be utilized to concurrently teach essential financial academic
vocabulary and fundamental financial concepts.
Task-Based Teaching
Task-based language teaching (TBLT) involves activities that require the use
of language to carry out meaningful tasks. In order for successful vocabulary learning to
occur, learners need to actively engage in authentic activities that mimic the target
context. In this way, learners will not only be prepared for language use; they will also be
35
36
prepared for spontaneous language production in the target context. The goal of TBLT is
to create learning opportunities by taking real-world tasks, and turning them into
pedagogical tasks (Nunan, 2005)
A pedagogical task has been defined in a number of ways. Richards, Platt, and
Weber (1986) define a pedagogical task as an activity that goes beyond the practice of
language for its own sake; something that is completed as a result of processing or
understanding language. Ellis (2003) describes a task as an activity that results in
language use that resembles the way that language is used in the real-word or target
context. Nunan (2005) defines a pedagogical task as ―a piece of classroom work that
involves learners in comprehending, manipulating, producing or interacting in the target
language…and in which the intention is to convey meaning rather than to manipulate
form‖ (p. 4).
While these definitions may slightly differ, they emphasize communicative
language use that models how learners will actually use the language in the real-world. If
students are to understand authentic language outside of the class, instructors must
provide students with structured opportunities to engage with such language inside of the
classroom (Nunan, 2005). As the TBLT approach focuses on meaning rather than form,
learners are free to use a variety of language structures to complete the task. This gives
learners the opportunity to actively manipulate the language in meaningful contexts.
Lastly, as TBLT aims to mimic a target context, learners will find the activities relevant
and worthwhile. As a result, TBLT should increase learner motivation in the classroom.
37
The Effective Instructional Sequence
There are a variety of ways to implement a TBLT approach in the classroom.
A widely utilized instructional model, not only in language learning, but in all facets of
education, is the Effective Instructional Sequence (EIS). The EIS was developed by the
California Department of Education (1985). It begins by identifying the tasks that leaners
will be able to perform upon completion of the lesson. Overall, the EIS consists of five
stages:
1. Setting the stage: This stage creates a context for the lesson. It should include
activities that spark student interest and tap into prior knowledge, while preparing
learners for new material.
2. Comprehensible input: This stage should develop receptive proficiency, the ability
to understand the content of the lesson. The material presented should be authentic and
reflect the real world, while encouraging higher level thinking skills.
3. Guided practice: This stage allows students to practice the new material through
controlled, structured activities. These activities should focus on control of vocabulary,
structures, and cultural behaviors of the unit and task completion.
4. Application and extension: This stage requires students to extend learning through
uncontrolled language production. The tasks should be representative of a real-world
scenario. Students should use all that they have at their disposal to accomplish these
tasks.
5. Assessment and evaluation: Instructors should end each unit by examining the
knowledge that the students have gained. The learners should be assessed according to
objectives for the unit.
38
Design
The Guide to Financial Academic vocabulary is made up of four chapters and
an appendix. The first three chapters summarize theories and concepts discussed in the
vocabulary literature review. The fourth chapter is a comprehensive course in financial
academic English. The appendix contains two versions of the FAWL, as well as a list of
resources for teachers.
Any guide attempting to serve as a tool for vocabulary instruction must
demonstrate an understanding of the topic. This guide summarizes vocabulary
information from the literature review. The beginning of the guide talks about which
words a learner should know before attempting to learn the FAWL. If a student does not
have a grasp of basic general vocabulary words, he/she will have a difficult time learning
the more complex words, and concepts associated with academic finance. However, if a
student does have knowledge of these words, it is important to know where they need to
go from there.
Nation and Waring (1997) argue that intermediate and advanced learners
should shift their focus to the less frequent vocabulary. Because technical vocabulary is
covered in content classes at the university level, it is important for learners to
concentrate on academic vocabulary. Accordingly, the guide very briefly touches on
technical vocabulary and goes into more depth on academic vocabulary.
Coxhead (2000) developed the Academic Word List (AWL) which identifies
the most common academic terms across disciplines. However, each academic discipline
employs a unique discourse, ultimately undermining this list (Highland & Tse, 2007). In
many cases, English language learning is considered a subject in its own right. That is,
39
students learn the language, and then the discipline. The guide and the FAWL view
language and content knowledge as an inseparable unit. As language and content
knowledge are a mutual byproduct of discipline study, the goal of the FAWL is to teach
financial academic vocabulary concurrently with basic financial concepts.
Knowing a word is more than understanding its definition. In fact, it is much
more. The guide discusses various facets of word knowledge according to Nation (2001).
This breakdown is widely supported in the field of vocabulary research. Up to this point
in the guide, the ―what‖ of vocabulary learning is discussed. The remainder talks about
the ―how.‖
The next chapter begins by discussing general aspects of how words are
learned. It discusses various learning strategies and gives examples of how to use them.
Then, the guide talks about how these words should be taught. It discusses general
aspects of how words should be taught and assessed.
The four-week intensive course gives teachers an idea of how to effectively
apply these concepts to the FAWL. The syllabus gives an overall description of the
course, states the rationale, and provides an overview of assignments and unit topics.
Using personal educational experience in finance, four topics were selected as units for
inclusion in the course. Each unit is task-based, with each session building on and leading
to the culminating task at the end of the unit. A task-based approach was utilized because
it promotes authenticity, engagement and manipulation of language, all features
necessary for effective vocabulary learning. Each task mimics a scenario that would be
encountered as a financial professional. The overall structure of each unit is based on the
Effective Instructional Sequence (EIS). The EIS facilitates the necessary scaffolding. As
40
the sequence progresses, the language and content are extended and applied to more
unstructured production. At the beginning of each unit, a unit overview is provided. The
unit overview covers the unit task, topic, rationale, goals, objectives, target vocabulary
and language standards. It also gives a detailed description of the culminating task,
including directions for the teacher. Additionally, the unit overviews provide agenda
outlines and descriptions for each of the lessons. This allows the teacher to formulate a
general view of how the unit should look. The first unit includes five task-based lesson
plans utilizing the EIS. Each lesson plan utilizes technology, and incorporates numerous
multiple intelligences. The lessons also incorporate numerous group activities. Groupbased work increases student cooperation and cohesiveness in support of L2 learning
(Anderson & Lynch 1988). All of the assignments and necessary materials for these
lessons are included. The lesson plans are comprehensive and should allow non-language
teachers to easily implement them. This allows use by parents, business professionals, or
curious parties. Beyond the first unit, the guide includes outlines and recommendations
for lesson and activity construction. This allows the teacher to take a proactive role in
tailoring the course to the specific needs of the students.
The end of the guide contains an appendix, with two versions of the Financial
Academic Word List. One has the headwords listed by frequency, and the other lists them
alphabetically. The former allows a quick comparison of relative frequency, while the
latter facilitates rapid referencing. The appendix also contains a list of teacher resource
websites. These range from vocabulary activities to financial material.
41
Summary
The Guide to Financial Academic Vocabulary can be used for a variety of
purposes. The guide includes the Financial Academic Word List, which contains the most
frequently used academic vocabulary related to finance that students will typically
encounter in finance courses at an English speaking university. This list can be used on
its own by students for autonomous vocabulary learning, as well as teachers for the
development and selection of classroom materials.
In order to facilitate efficient instruction of the FAWL, the guide provides an
overview of the best practices in vocabulary learning and teaching. The information is
supported by examples and visuals when appropriate. This allows the guide to serve
vocabulary needs outside the context of finance. The information provided can be used
by language teachers, or anyone interested in the vocabulary development process.
The guide also contains a sample financial academic English course. The
course models how to effectively implement both the FAWL and the vocabulary
information into a curriculum. The course demonstrates how to concurrently teach
essential financial academic vocabulary and fundamental financial concepts.
CHAPTER V
DISCUSSION, PEDAGOGICAL
IMPLICATIONS, AND
CONCLUSIONS
Discussion
In the U.S., international student enrollment continues to increase, reaching an
all time high in 2011 (Witherell & Pittman, 2012). In order to prepare ELLs for the
rigorous linguistic demands associated with university study, EAP programs have been
developed both domestically and internationally. However, many ELLs still continue to
struggle with the linguistic demands of university texts.
Research consistently shows high correlations between vocabulary and the
various measures of L2 proficiency. However, explicit vocabulary instruction often
receives minimal attention in the classroom. For students learning English in a non-native
speaking country, explicit vocabulary instruction is necessary to counterbalance the lack
of target language immersion. Considering the fact that EAP classrooms are composed of
students with a wide variety of educational goals, the selection of which vocabulary
words to teach often proves difficult. Fortunately, corpus-based studies have produced a
variety of academic word lists to aid teachers in the selection of terms. However, the
majority of these lists are general academic vocabulary lists that ignore the unique
discourse associated with the various disciplines. Several discipline specific word lists do
42
43
exist, but they account for only a fraction of academic disciplines.
Another challenge facing EAP teachers is the content knowledge of the
various disciplines necessary to teach these vocabulary words in an authentic context. In
many English language programs, the English language is seen as a subject in itself.
When students come from a program like this, they often find themselves having to learn
not only the new content of the discipline, but also the language of the discipline. The
academic language and content knowledge of a particular discipline should be viewed as
a mutual byproduct. In order for teachers to fill this gap in knowledge, EAP teachers
must turn to outside resources. A variety of teaching materials are available to EAP
teachers, but a continual refinement of these materials is necessary to ensure reliability.
Pedagogical Implications
The goal of this project was to identify frequently used academic vocabulary
that students will typically encounter in finance courses at an English speaking university
and to provide the materials necessary to teach these words. To identify the words, this
study combined three university finance text books to form the Financial Academic
Corpus. From this corpus, the most frequently utilized academic vocabulary was
compiled into the Financial Academic Word List (FAWL). The task of creating the word
list was simple, but the process proved tedious and lengthy. The result was an academic
word list that provided approximately 14% text coverage for university finance texts.
Deciding what to include as necessary materials to teach the words on the
FAWL resulted in a lot of trial and error. An underlying aim of this project was to allow
this guide to be utilized by as many people as possible. In order to extend the use of this
44
guide to people other than teachers, an extensive review of the literature related to
vocabulary teaching and learning was conducted. What was thought to be essential
foundational knowledge of vocabulary teaching and learning was summarized and
explained with a few examples.
In order to effectively incorporate this information to teach the words on the
FAWL, a certain level of discipline knowledge is necessary. Initially, the idea was to
include a list of financial topics and a few sample lesson plans. The result was a few
lesson plans that were over packed with material. There was no way to adequately
demonstrate the implementation of the material with a few random samples of lesson
plans. The final decision was to create an intensive four-week course that focused on a
new fundamental financial topic and relevant language each week. Having a bachelor‘s
degree in financial management, the topic outline was delineated quickly. It was changed
after realizing the material would be too advanced for students who were not current
undergraduates in finance. After more trial and error, the final topics were chosen. The
task-based approach was selected early as the mode of instruction. The task-based
approach allows the language to be implemented in authentic, hands on tasks. Setting out
to create 20 detailed lesson plans soon proved inefficient. Detailed lesson plans would
make it difficult for someone to tailor the material to the progress of the students.
Ultimately, the course turned into a syllabus, four unit overviews, detailed lesson plans
for the first unit, and a list of vocabulary activity and financial topic resources.
45
Conclusions
The Guide to Financial Vocabulary has the ability to be utilized in a wide
range of contexts. On its own, the FAWL could be implemented by an experienced
language teacher with a basic knowledge of finance. Additionally, the list could be used
as a reference for lexical syllabi or the selection of texts. However, the ideal scenario
would be to implement the course as a special topics class in an international language
school. The course could essentially be taught by a wide range of teachers, or people
using the FAWL with the vocabulary information and list of resources. It could also be
extended to fit into existing programs with a few simple changes. The Guide to Financial
Vocabulary can be used by a wide audience. This includes, but is not limited to: students,
non-language teachers, parents, and businessmen. Furthermore, this allows the guide to
be implemented in a variety of settings. With a few changes to the selected vocabulary or
topics, the vocabulary information and list of resources should allow the guide to reach a
large number of those who need it. However, this guide is not specifically designed for
native English speakers. Some of the language utilized in the course may seem
unnecessarily repetitive. This was done to allow those not immersed in the language to
achieve high repetitions with the target vocabulary.
This project resulted in the first academic financial corpus and financial
academic word list. In order to ensure reliability, the FAWL should be rechecked against
larger financial academic corpora. However, no such corpora currently exist. It is
recommended that a larger, more comprehensive corpus be compiled from textbooks,
class materials, and lectures, not only for lexical analysis, but for overall discourse
analysis. No current research on the actual implementation of the Guide to Financial
46
Vocabulary has been conducted. In order to ensure reliability, the guide should undergo a
variety of field tests. The included course is of particular concern. Field tests would
produce results that could be used to refine the design of the course, as well as provide
suggestions for future implementation or adaptation.
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APPENDIX A
A GUIDE TO FINANCIAL ACADEMIC VOCABULARY
Table of Contents
Introduction…………………………………………………………………………
PAGE
59
Chapter 1: General and Academic Vocabulary……………………………………..
Which words should students already know?.………………………………..
What is academic vocabulary?.……………………………………………….
What is the Financial Academic Word List?.…………………………………
60
60
60
61
Chapter 2: Principles of Vocabulary Learning……………………………………..
What does it mean to know a word?.………………………………………….
How are words learned?.……………………………………………………...
62
62
63
Chapter 3: Teaching Academic Vocabulary ………………………………………..
How can these words be efficiently taught?.………………………………….
How can we assess these words………………………………………………
66
66
68
Chapter 4: Financial Academic English Course………………………………….…
Syllabus………………………………………………………………………..
Unit 1…………………………………………………………………….…….
Unit 2...………………………………………………………………………...
Unit 3…………………………………………………………………………..
Unit 4…………………………………………………………………………..
69
70
73
102
108
112
References…………………………………………………………………………...
116
Appendix…………………………………………………………………………….
List of teacher resources………………………………………………………
Effective Instructional Sequence Template…………………………………..
The FAWL – Headwords only, by frequency………………………………...
The FAWL – Word families, alphabetically………………………………….
117
118
119
120
124
58
59
INTRODUCTION
Without grammar very little can be conveyed,
without vocabulary nothing can be conveyed.
(Wilkins, Linguistics in Language Teaching)
Vocabulary is an essential part of language learning. ―A person who knows
more words can speak, and even think, more precisely about the world‖ (Stahl & Nagy,
2006, p. 5). This guide focuses on teaching and learning academic vocabulary. It is
designed to partially alleviate vocabulary burdens placed on EAP teachers. It explains
why it is beneficial to teach discipline specific academic vocabulary, and provides a
comprehensive financial academic word list. The guide offers information about best
theory and practices of vocabulary development and teaching. It also provides a usable
comprehensive task-based course which utilizes a high number of FAWL words. The
course gives an idea of how the FAWL can be effectively utilized in the classroom. The
following is a breakdown of the guide‘s organization:
Chapter 1 General and Academic Vocabulary
 Which words should students already know?
 What is academic vocabulary?
 What is the Financial Academic Word List?
Chapter 2 Principles of Vocabulary Learning
 What does it mean to know a word?
 How are words learned?
Chapter 3 Teaching Academic Vocabulary
 How can these words be efficiently taught?
 How can we assess these words?
Chapter 4 Financial Academic English Course
 An intensive 4 week course covering basic financial concepts and relevant
academic vocabulary
Appendix
 List of teacher resources
 Effective Instructional Sequence template
 The FAWL – Headwords only, by frequency
 The FAWL – Word families, alphabetically
60
CHAPTER I
GENERAL AND ACADEMIC VOCABULARY
Which words should students already know?
If one thing is undeniably true about language learning, it is that learners need
to know A LOT of words. Fortunately, a small number of words in English account for
the majority of communicative acts. These words are referred to as high-frequency, or
general words. They include words such as: the, as, book, say. The General Service List
(West, 1953) is made up of the 2,000 most frequently used word families in the English
language. Beginning language learners should focus on these words, as they will make up
anywhere from 75%-90% of a given communicative act. Because this guide is designed
to teach university level vocabulary, we will assume our students know the majority, if
not all, of these words. Once a learner knows these words, they should focus on other
vocabulary. If a learner plans to attend an English speaking university, they need to learn
the words that they will encounter in academic texts.
What is academic vocabulary?
Academic texts are composed of approximately 80% general vocabulary, 10%
academic vocabulary, 5% technical vocabulary, and 5% low-frequency vocabulary. There
are a high number of words in English that are not used very often. These are called lowfrequency words. Because these words are rarely encountered, it is inefficient to teach
them in the classroom. These words are better learned by applying word learning
strategies.
Technical vocabulary includes words that are found only in a specific field.
For example, photosynthesis refers to the way plants convert light into energy. It is
unlikely that this word will be used outside of plant sciences. Technical words generally
have fixed meanings that are necessary for the more complex concepts associated with a
particular discipline. These words are usually covered in a particular language learning
situation; whether in a classroom or on-the-job training.
Academic vocabulary instruction, on the other hand, is usually skipped in the
content classroom. The majority of professors assume students come into university study
have already mastered these words. Academic words occur across a wide variety of
academic texts, but often take on new meanings depending on the discipline. For
example, Webster‘s dictionary defines principal as ―most important, consequential, or
influential (Merriam-Webster‘s online dictionary, n.d.).‖ However, when principal is
used to talk about a loan, it refers to the amount of money borrowed. Because academic
words are highly contextual, they are difficult for language learners. It is important to
devote class time to the explicit instruction of these words.
61
What is the Financial Academic Word List?
Not only do academic texts utilize a large number of academic words, each
discipline uses some words differently and more frequently. The Academic Word List
(Coxhead, 2000) is made up of the 597 most frequently used word families across a wide
variety of academic disciplines. Because each academic discipline uses a unique
discourse, the AWL may not be the best representation of the most frequently used
academic vocabulary in a particular context. The Financial Academic Word List is the
result of my own research. The FAWL:
 Contains 248 of the most frequently used academic vocabulary words in university
finance textbooks.
 Provides average text coverage of 13.51% for university finance texts.
 Has a small number of words that that occur frequently. The 50 most frequently
used word families account for approximately 8% of a given financial textbook. These 50
words would be a good start for any student or teacher interested in financial vocabulary.
 Contains 322 fewer word families and provides more coverage of finance textbooks
than the AWL.
Containing fewer words, but providing more text coverage, the FAWL is a
solid representation of academic words that are found in university finance textbooks. It
may seem more efficient to teach the most frequently used word families of all academic
disciplines, but the unique discourse of disciplines undermine the value of such an
approach. If instructors are to prepare learners for the language to be encountered in
university study, they need to provide them with an accurate representation of that
language.
62
CHAPTER II
PRINCIPLES OF VOCABULARY LEARNING
What does it mean to know a word?
Not only do language learners need to know a lot of words, they need to know
a lot about each word. This idea is often referred to as vocabulary depth. Nation (2001)
provides a comprehensive overview of the various facets of word knowledge. He
identifies three main dimensions of word knowledge: form, meaning, and use. He
expands on each dimension (Nation, 2001, p. 27):
Form:
 Spoken
 Receptive: What does the word sound like?
 Productive: How is the word pronounced?
 Written
 Receptive: What does the word look like?
 Productive: How is the word written and spelled?
 Word Parts
 Receptive: What parts are recognizable in this word?
 Productive: What word parts are needed to express the meaning?
Meaning:
 Form and meaning
 Receptive: What meaning does this word form signal?
 Productive: What word form can be used to express this meaning?
 Concept and referents
 Receptive: What is included in the concept?
 Productive: What items can the concept refer to?
 Associations
 Receptive: What other words does this make us think of?
 Productive: What other words could we use instead of this one?
Use:
 Grammatical functions
 Receptive: In what patterns does the word occur?
 Productive: In what patterns must we use this word?
 Collocations
 Receptive: What words or types of words occur with this one?
 Productive: What words or types of words must we use with this one?
 Constraints on use
 Receptive: Where, when, and how often would we expect to meet this word?
 Productive: Where, when, and how often can we use this word?
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All of these aspects are an important part of knowing a word. However, some
are easier to learn than others. Learning how to spell a word is obviously easier than
learning a words most frequent collocates. Nation‘s distinctions also highlight an
important aspect of word knowledge, receptive knowledge and productive knowledge. A
learner‘s knowledge of a particular word aspect progresses along a continuum, moving
from receptive to productive ability. Moreover, this progression is the combination of an
infinitesimally small number steps until they are cemented in the mental lexicon. (Nagy
& Scott, 2005).
How are words learned?
Learning a word is a long incremental process. As discussed in the previous
section, there are many aspects of knowing a word each of which progress along a
continuum. It is important to understand that learning a large number of words takes a
significant amount of time. BE PATIENT. One way to speed up the process is through
REPETITION. With any activity, the more often it is practiced, the more likely it will be
learned. Growing up you probably had teachers or coaches you telling you ―practice
makes perfect.‖ Then, probably a little later in life, you began to here ―perfect practice
makes perfect.‖ People started to realize that high repetitions led to the repeated actions
rather than desired actions. The same applies to vocabulary learning. Not only must
words be encountered frequently, they must be quality encounters. Overall, vocabulary
learning is the achieved through two modes: intentional learning, and incidental learning.
Intentional Vocabulary Learning
Look back at the dimensions of word knowledge in previous section.
Intentional vocabulary learning involves explicitly learning these features. However, an
over-reliance on one aspect of word knowledge will limit true potential. The more
connections that are established among these features, the more likely the word will be
learned. The more numerous and intricate these connections are, the better the word will
be known. Here are a few ways to explicitly develop word knowledge.
Flash cards. Flash cards are a widely used technique for learning that utilizes
the process of active recall. One side of the card contains information that will prompt the
answer listed on the other side. Flash cards can be used in different ways. Figure 1
demonstrates one way to adapt flash cards for vocabulary purposes. Flash cards can also
incorporate information, such as: definitions, L1, equivalents, spelling, morphology,
phonology, syntax, collocations, idioms, and example sentences.
Semantic word maps. Semantic word maps give students an opportunity to
conceptualize their knowledge of words and relationships. The maps are visual organizers
that connect new information to background knowledge. The specific information and
design of semantic maps vary, depending its purpose and use. Figure 2 is an example of a
semantic word map for vocabulary purposes.
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Suffixes & Meaning
Compensation
Compensate + ion
Parts:
Give or receive
pay for work + act or state
completed
Definition:
Act of paying or receiving pay for
work completed
Figure 1 Compensation flash card
Figure 2 Financial market semantic word map
Incidental Vocabulary Learning
Incidental vocabulary learning is the acquisition of words as a by-product of
an activity other than learning explicit features. This is generally achieved through
reading.
Learning words through reading. Many words are learned through reading.
However, learning words as a by-product of reading:
 Is not very efficient
 Requires a high number of encounters in varying contexts
 Involves a significant effort, as new words and meanings must be recognized and
applied to background knowledge
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The combination of repetition and quality of encounters can lead to more
significant increases in word knowledge. Extensive reading can help increase vocabulary
levels, reading speeds, attitudes towards reading, and overall language proficiency. When
encountering an unknown word in reading, the following information can be used to
discover a word‘s meaning:
Word Parts. Can this word be broken down into recognizable word parts?
Many of the words in the English language are morphologically complex. Assuming
knowledge of common affixes and word meanings, one can deduce the meaning of a high
number of words.
 The forest fire was accidental.
Accident (n)
+
(Unfortunate event that +
occurs unintentionally)
al
(having characteristics of)
= Accidental (adj.)
= (occurring
unintentionally)
Syntax information. Where is this word in the sentence? What part of speech
is it?
 Jessica took notes on the periphery of her paper.
Because this word occurs at the end of a prepositional phrase, we can conclude that it is a
noun. Although this provides little information on the word‘s meaning, it can limit the
number of available choices.
Inferring meaning. To infer word meanings from a given context, a learner
must utilize the contextual information to derive meaning. For example, a word‘s
grammatical class, collocations, morphological information and sentence position can be
used in combination with background knowledge to derive a word‘s meaning. Take the
previous example:
 Jessica took notes on the periphery of her paper.
As the choice has already been limited to nouns, we can use our background knowledge
to further narrow the possibilities. Taking notes usually involves writing something on a
piece of paper. As paper occurs in a different prepositional phrase, further investigation is
required. Try substituting another word that fits into the sentence.
 Jessica took notes on the edge of her paper.
It can be inferred that periphery refers to a location on the paper. Inferring word
meanings in a variety of contexts often proves difficult. Sometimes the context
surrounding a given word is uninformative, or worse, misleading. It is important to
supplement this type of learning with another.
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CHAPTER III
TEACHING ACADEMIC VOCABULARY
How can these words they be efficiently taught?
In general, the best vocabulary programs find a happy medium between
explicit learning and implicit learning. This medium will change depending on the
proficiency level of the students. Graves (2000) identified essential constituents of
effective vocabulary teaching: rich and varied language experiences, direct teaching of
individual words, and vocabulary learning strategies.
Rich and varied language experiences
Learners learning English as a foreign language do not have the luxury of
target language immersion. Their encounters with academic vocabulary are fewer and
generally less authentic. When teaching these words, it is important to provide input that
is as authentic as possible. Try to mimic class or discipline tasks that a learner would
encounter in an English university setting. Also, vary the contexts so the learner has to
identify and learn subtle differences in meaning and use. Contextual information is
crucial when learning academic vocabulary, as their meanings are guided primarily by
the context in which they occur.
Direct teaching of individual words
For native speakers, academic vocabulary is experienced at a young age. For
non-native speakers, primary education is in a language other than English. The later a
learner begins to learn English, the greater the difficulty in learning academic words.
Academic words seldom occur outside of academic contexts. Even in academic contexts,
these words are not common. When they do occur, their meanings often vary. As a result,
academic vocabulary is difficult to learn incidentally. It is necessary that these terms
receive explicit instruction in the classroom. Vocabulary teaching needs to foster
repetition, motivation, and engagement.
Repetition. With any learning activity, attrition is always an issue.
Vocabulary knowledge is especially prone to attrition. As it is unlikely that a word will
be learned through a single encounter, vocabulary teaching needs to involve:
 High repetitions. The more encounters with a word the better.
 Varied, authentic contexts.
 Coverage of all facets of language production.
 Speaking, reading, writing, and listening.
 Fewer words in rapid succession, rather than massed practice.
Motivation. The crucial role that motivation plays in any learning process is
rather obvious. It is difficult to teach anything if the student does not want to learn it. Not
only is it important for a teacher to get students excited to learn in the class, but to also
create a desire to learn on their own outside of class. This involves:
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 Vocabulary that is relevant and authentic.
 Activities that are relevant and authentic.
 Creating activities that are:
 Fun and exciting.
 Not too difficult.
 Allowing students to be active members of the classroom community.
 Being a positive, helpful influence.
 Teaching vocabulary learning strategies.
Engagement. When teaching vocabulary, it is necessary to provide activities
that promote engagement. The more attention and manipulation that is given to an item,
the more likely that it will be learned. Learners need to:
 Be challenged, but not overwhelmed.
 Utilize multiple facets of language production simultaneously.
 Negotiate meaning, personalize words.
 Heavy adherence to contextual nature of academic vocabulary.
Vocabulary learning strategies
The ultimate goal of any educator is to create autonomous leaners. Teaching is
less about teaching material, than it is fostering a desire to learn. In this way, learning
will not stop once the student leaves the classroom. In order to create autonomous
vocabulary learners, it is necessary to provide students with vocabulary learning
strategies that can be used outside of the classroom. Some word learning strategies have
been mentioned previously. These strategies, flash cards, semantic word maps, word
parts, guessing from context, etc., not only have a major role in the classroom, but can be
used by students outside of the classroom for further personal study. One important
vocabulary strategy not mentioned thus far is vocabulary journals. Vocabulary journals
are a good example of how a learner strategy can be used outside of the classroom for
personal vocabulary learning. Figure 3 is an example of a page from a vocabulary
journal. Every time learners encounter a new word outside of the classroom, they can
look it up and enter the information into the journal. Similarly, students can make flash
cards to remember newly encountered words or word meanings.
Word Family
Part of
Members Pronunciation Speech Affix(es) Word Meaning(s) Synonym(s) Example Sentence
Figure 3 Vocabulary journal example
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How can we assess these words?
Testing students on vocabulary is essential. But, before beginning to think
about assessment, objectives must be clearly defined and measurable. That way, what
needs to be tested is known. Results from assessment can dictate the pace of lessons,
determine effectiveness of approaches, and keep track of student progress. All of the
dimensions of vocabulary knowledge mentioned can be tested; although, some prove
easier to assess than others. There are a variety of assessment methods available, each
possessing strengths and weaknesses for testing the various dimensions of word
knowledge. When selecting or creating an assessment, keep the following factors in
mind: practicality, validity, and reliability.
Practicality
 Is it easy to create?
 Is it easy to administer?
 Is it easy to interpret?
Validity
 Does it actually measure the objectives?
 Does it require learners to demonstrate knowledge of the vocabulary?
 Will test performance predict future vocabulary use?
Reliability
 Will it give consistent results?
 Can it be graded by different people and yield the same results?
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CHAPTER IV
FINANCIAL ACADEMIC ENGLISH COURSE
Now that the essentials of academic vocabulary learning and teaching have
been covered, let‘s take a look at how these ideas and the FAWL vocabulary can be
incorporated into instruction. The following course shows how relevant financial
academic language and fundamental financial concepts can be taught simultaneously.
The course is a four-week intensive program introducing English language
learning students to the language and fundamental concepts associated with university
study in finance. The syllabus gives an overall description of the course, states the
rationale, and provides an overview of the assignments and unit topics. Each unit is taskbased, with each session building on and leading to the culminating task at the end of the
unit. A task-based approach was utilized because it promotes authenticity, engagement
and manipulation of language, features necessary for effective vocabulary learning. Each
task presents a scenario that would be encountered as a financial professional. The overall
structure of each unit is based on the Effective Instructional Sequence (EIS). The EIS is a
widely utilized format developed by the California Department of Education (1985). It
consists of five parts: setting the stage, comprehensible input, guided practice, application
and extension, and assessment and evaluation. The units begin basic and controlled to
facilitate the necessary scaffolding. As they progress, the language and material are
extended and applied to more unstructured production.
At the beginning of each unit, a unit overview is provided. The unit overview
covers the unit task, topic, rationale, goals, objectives, and target vocabulary. The
numbers in brackets indicate the word‘s FAWL frequency rank. The course also provides
a description of the culminating task, and includes directions for the teacher.
Additionally, the unit overviews outline and describe daily agendas to allow a teacher to
formulate a general view of how the lesson should look and go.
The first unit includes five EIS lesson plans that can be immediately
incorporated by a wide range of teachers. Each lesson plan utilizes technology and
incorporates numerous multiple intelligences. All of the necessary assignments for these
lessons are included. The lesson plans are comprehensive, allowing implementation by
individuals other than language teachers. The remaining three units only include unit
overviews. This requires the instructor to take an active role and use the unit overviews to
tailor the course and materials to the specific progress and needs of his/her students. To
facilitate extension, a list of resources for vocabulary activities and financial material can
be found in the APPENDIX.
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Financial Academic English
Course Description
This is an intensive course that focuses on the development of financial
academic English. More specifically, this encompasses: (a) concurrent study of relevant
academic vocabulary and basic financial concepts; (b) development of academic
language in listening, speaking, reading, and writing; (c) logic and critical thinking to
accomplish authentic academic tasks; and (d) examination of financial academic study
and potential careers.
This course will stress financial:
 Academic Vocabulary
 Explicit instruction
 Useful learner strategies
 Academic Language
 Listening, speaking, reading, writing
 Academic Skills
 Taking notes, writing research reports, conversing with colleagues and clients,
giving presentations
 Concepts
 Tasked-based, hands on learning
 Cooperative and collaborative learning
Course Rationale
Thousands of English language learners choose to pursue an education at an English
speaking university. However, many of these students struggle with the advanced
language associated with this level of study. This is often the result of learning English
separately from academic disciplines. Once students reach the university level, they have
to concurrently learn the advanced concepts and language associated with the particular
discipline. This places an unnecessary burden on students. This course seeks to combine
fundamental vocabulary and basic concepts in order to more effectively prepare students
for the study of finance at the university level.
Course Objectives
This course examines the language and fundamental concepts associated with the study
of finance in a university context. It focuses on the language, content, and skills that
students need in order to succeed at that level of education. The course is designed to:
 advance the understanding of the language and concepts associated with academic
finance
 highlight strategies and techniques for successful language and discipline learning.
 foster cooperative and collaborative learning.
 promote the development of academic and professional skills.
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Course Overview
This course is designed to be taught over the span of four weeks, meeting no less than
one hour a day, five times week. It is broken down into four units, each lasting one week.
Each unit is task-based, and ends with a culminating unit task. All units emphasize
designated vocabulary chosen from the Financial Academic Word List. A basic overview
of the topics is provided below.
Session
Topic
Unit 1 – Time Value of Money - Future Value
1
Introduction to the time value of money
2
3
Future value
Calculating future value
4
5
Applying future value
Task #1
Unit 2 – Time Value of Money - Present Value
6
7
8
9
10
Introduction to present value
Present value
Calculating present value
Applying present value
Task 2
Unit 3 – Risk and Return
11
12
13
14
Introduction to risk and return
Risk and return
Calculating risk and expected return
Applying risk and return
15
Task #3
Unit 4 – Diversification
Introduction to diversification
Diversification
Portfolio diversification
Applying diversification
Task #4
Final Review – Survey of Financial Degrees and Careers
16
17
18
19
20
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Task Descriptions
There are four culminating unit tasks. Each task involves financial advising requests from
a recurring client.
Task 1. Obtaining a Client
A potential client needs financial advice. He is interested in buying a plot of land and has
several loan options. You must pick the best loan based on the client‘s personal and
financial information.
Task 2. Making the Client Happy
Your client is looking to secure a college future for his son. He wants you to invest
enough of his money today to cover the costs associated with college. Completion of this
task this requires historical research to predict future conditions.
Task 3. Keeping the Client Happy
Your client fell in to a large sum of money as a result from an unfortunate event. He is
looking to put the money in to a low-risk investment, with the earnings going to a charity.
Task 4. Dealing with an Angry Client
The ―low-risk‖ investment that you put your client‘s money into tanked. In order to keep
him as a client, you must put together a risk-free portfolio.
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UNIT 1 – OVERVIEW
UNIT DURATION:
Five 60 minute class lessons.
UNIT TOPIC:
The Time Value of Money – Future Value
UNIT GOALS:
The goal is to learn the necessary language and concepts associated with the value of
money, specifically related to future value.
UNIT RATIONALE:
Understanding the effects of interest on the value of money is crucial in the selection of
investments. Moreover, the ability to communicate this information to a client is vital.
UNIT TASK
The culminating unit task is comprised of three parts. The first part requires students to
listen to a potential client for pertinent information. The second part requires them to
calculate the future value of various investments. The final part requires them to use the
client information to select the right investment for the client. This involves justification
statement via PowerPoint presentation.
UNIT OBJECTIVES:
The student will be able to calculate the future value information of five different
investments. They will be able to write a justification statement using all of the unit‘s
vocabulary, explaining why the chosen investment is most appropriate for the client. In
groups, the students will be able to create and present a PowerPoint presentation
summarizing the justification statement.
UNIT VOCABULARY – HEADWORDS:
Annual [25], Assume [35], Available [76], Cash [5], Compound [102], Constant [165],
Evaluate [132], Finance [4], Formula [246], Goal [148], Income [17], Invest [1], Mature
[29], Maximum [153], Minimum [154], Minus [206], Obligated [101], Percent [2],
Period [16], Plus [143], Principal [95], Professional [149], Purchase [22], Require [26],
Sum [157], Summary [127]
I. SETTING THE STAGE (DAY 1):
Overview
 Introducing unit topic, task, and vocabulary
 Client voicemail activity
 Word search exercise
 Vocabulary Bingo
 Tying lesson vocabulary to unit topic
 Review/preview & homework
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Description
This lesson sets the stage for the entire unit. It starts off with a ―client voicemail‖,
outlining the unit task while introducing lesson vocabulary. The lesson uses basic
vocabulary activities to reinforce recognition and pronunciation. It also builds on the
lesson vocabulary and gives a basic introduction to the unit topic and concepts through a
classroom discussion. The lesson ends by introducing the homework, and the following
lesson. The homework requires the students to create the recurring vocabulary materials,
i.e. flash cards and vocabulary journals.
II. PROVIDING INPUT (DAY 2):
Overview
 Quick write warm up
 Vocabulary learning strategy discussion – guessing from context
 Guessing meaning from context activity
 Vocabulary feature analysis
 Group PowerPoint presentations
 Review/preview & homework
Description
This lesson begins with a quick write which requires students to summarize and ask
questions about the previous lesson while concurrently using unit vocabulary. It builds on
the previous lesson, and introduces vocabulary learning strategies. It reviews previous
unit vocabulary and introduces new lesson vocabulary through contextual guessing
activities. The activities provide authentic scenarios relevant to the unit topic. The lesson
incorporates group work to thoroughly analyze and present various features of the lesson
vocabulary. The lesson ends by introducing the homework, and the following lesson. The
homework requires students to review and extend knowledge on the current unit
vocabulary.
III. PROVIDING GUIDED PRACTICE (DAY 3):
Overview
 Quick write warm up
 Crossword puzzle activity
 Calculating future value discussion
 Future value worksheet
 Written assessment
 Review/preview & homework
Description
This lesson begins with a quick write which requires students to summarize and ask
questions about the previous lesson while concurrently using unit vocabulary. The lesson
reviews previous vocabulary and introduces the lesson vocabulary through a crossword
puzzle. The unknown meanings from the crossword puzzle lead into a discussion of the
more advanced unit concepts and equation. This lesson focuses on the language and
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equations necessary to calculate the future value of an investment. The worksheet
provides practice for calculations and reinforces fundamental topic concepts. The writing
activity requires students to demonstrate knowledge of the language and concepts. The
lesson ends with a review and an introduction of the homework, and the following lesson.
The homework involves vocabulary review and calculation practice.
IV. PROVIDING APPLICATION AND EXTENSION (DAY 4):
Overview
 Quick write warm up
 Client factors and investments discussion
 Conversation sequencing activity
 Group role play exercise
 Written assessment
 Review/preview & homework
Description
This lesson begins with a quick write which requires students to use unit vocabulary to
discuss how the concepts and language covered thus far are applicable outside of the
immediate classroom. The lesson reviews previous vocabulary and concepts and
discusses how the information applies to the real world. It incorporates the lesson
vocabulary in authentic conversations that model professional scenarios. The lesson
provides role playing to practice the language required to converse in these scenarios.
The extension of the language and material prepares the students for the culminating unit
task in the next lesson. The lesson ends with a review and discussion of the culminating
task and the homework prepares them for the task.
V. PROVIDING ASSESSMENT AND EVALUATION (DAY 5):
Overview
Quick write warm up
Skype client meeting
Email activity
Individual group discussions
Mock client PowerPoint presentation
Unit review/preview & homework
Description
This lesson begins with a quick write which requires students write down all questions
and concerns about the upcoming task. The remainder of the lesson will be the
culminating unit task. The task incorporates all of the topics and vocabulary covered in
the unit. The lesson ends with a unit review, and a preview of the upcoming unit. The
homework is to refine and expand the written justification statement for the next class.
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UNIT 1 - LESSON 1
LESSON DURATION:
60 minutes
LESSON TOPIC:
The Time Value of Money – Future Value
LESSON RATIONALE:
This lesson is an introduction to the value of money, specifically related to future value.
LESSON GOALS:
The goal of this lesson is to introduce the basic vocabulary and general concepts
associated with the of time value of money.
LESSON OBJECTIVES:
The students will be able to find all of the unit vocabulary in a word search.
LESSON VOCABULARY – HEADWORDS:
Available [78], Evaluate [137], Finance [4], Professional [155], Purchase [22], Summary
[132], Invest [1]
I. SETTING THE STAGE:
To set the stage for this lesson, have POTENTIAL CLIENT VOICEMAIL cued up on
the projector. Make sure the unit vocabulary is written on the board and visible. After the
students get settled in, play POTENTIAL CLIENT VOICEMAIL without any
explanation. Once the audio is complete, explain that this man is a potential client
looking for financial advice. Before you get into detail, go over the day‘s agenda and
objectives, which is as follows:
1. Introducing unit topic, task, and vocabulary
2. Client voicemail activity
3. Tying lesson vocabulary to unit topic
4. Word search activity
5. Vocabulary Bingo
6. Review/preview & homework
Once you go over the agenda, pull up the transcript of the POTENTIAL CLIENT
VOICEMAIL on the overhead. Pass out a hard copy to each student. Play the
POTENTIAL CLIENT VOICEMAIL again. After this, ask the students if they heard any
of the unit vocabulary. Ask for volunteers to come up and underline the words on the
overhead. Have them say the words aloud as they underline them. Have the class
underline each word as they are said aloud. Once all of the words are highlighted, have
the students write them in their vocabulary journal, and on flash cards. Then, begin a
basic discussion on the time value of money, concentrating on future value.
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II. PROVIDING INPUT:
Incorporate the lesson vocabulary, but do not get too complicated in the explanation of
the topics. Frame it as preparation for the culminating task. Use the following outline as a
reference for the discussion:
Time value of money
 What gives money value?
 Ability to purchase goods and services
 What affects time value of money?
 Interest rates
 Investing vs. borrowing
 Payments
 Amount of money
 Time
 Introducing future value
 Why is the value of money I borrow or lend now different than in the future?
 Why is this important?
 What is an investment?
 How does future value influence investing?
 How does this relate to the unit task?
Keep the discussion basic and use relevant examples to the students. Encourage
participation from the entire class.
III. PROVIDING GUIDED PRACTICE:
Next, hand out the TIME VALUE OF MONEY – WORD SEARCH. The words are
forward, backward, and diagonal. This will add another level of difficulty to the task. The
students must find all of the words before moving to the next assignment.
IV. PROVIDING APPLICATION AND EXTENSION:
Once students are done with the word search, hand out VOCABULARY BINGO. The
bingo sheet contains the lesson vocabulary, as well as the rest of the unit vocabulary. This
will prime students for the upcoming lessons. Provide them with, or have them make
bingo markers. When a square is called, have the entire class repeat the word in the
square. Utilize as many bingo variations as time allows, but make sure to use the blackout
variation, so all of the words are covered. Have students take turns being the callers.
After the last game is finished, review the lesson and give a preview of the next session.
V. PROVIDING ASSESSMENT AND EVALUATION:
The word search and Bingo activity serve as the assessment for lesson objectives. The
activities test whether or not the students can recognize and pronounce the lesson
vocabulary. End the session by explaining the homework, which is to make flash cards
for all of the vocabulary in the unit. The students need to write each word on the front of
an index card, with the definitions on the back. Have them look the words up online, but
make sure they write in pencil for future corrections.
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LESSON MATERIALS:
POTENTIAL CLIENT VOICEMAIL – TRANSCRIPT
―Hi. My name is (client name). I am looking for professional financial help. My last
financial advisor lost a lot of money in bad investments. If you can help me with my
current situation, I will hire you for future work. I am looking to purchase a plot of land
to build a new house. The land costs $175,000. I need your help in evaluating the
available loans offered by the banks here in town. I will Skype you Friday morning and
give you a summary of my personal and financial information. I want a decision on
which loan to take by the end of the day Friday. Talk to you then.‖
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THE TIME VALUE OF MONEY
WORD SEARCH
Circle the unit vocabulary listed below.
(Hint: look forwards, backwards, up and down, and diagonally.)
Unit Vocabulary Words
Annual
Assume
Available
Cash
Compound
Constant
Evaluate
Finance
Formula
Goal
Income
Invest
Mature
Maximum
Minimum
Minus
Obligated
Percent
Period
Plus
Principal
Professional
Purchase
Require
Sum
Summary
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THE TIME VALUE OF MONEY
WORD SEARCH – ANSWERS
81
VOCABULARY BINGO
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UNIT 1 - LESSON 2
LESSON DURATION:
60 minutes
LESSON TOPIC:
The Time Value of Money – Future Value
LESSON RATIONALE:
This lesson looks at the vocabulary involved with future value and the time value of
money.
LESSON GOALS:
The goal of this lesson is to learn the vocabulary necessary for further study of future
value.
LESSON OBJECTIVES:
In groups of four, students will present a feature analysis of all of the lesson vocabulary.
The feature analysis must include the following information: spelling, word family
members, pronunciation, part of speech, affixes, definitions, and 1 sample sentence for
each word family member.
LESSON VOCABULARY – HEADWORDS:
Annual [26], Cash [5], Income [17], Obligated [101], Mature [29], Require [26]
I. SETTING THE STAGE:
To set the stage, have each student complete a quick write. Have the students summarize
the last lesson‘s material, using at least lesson vocabulary. Allow them to write questions
or concerns about content. This will prime them for the upcoming material. After the
quick write, go over the day‘s agenda and objectives, which is as follows:
1. Quick write
2. Welcome
3. Objectives
4. Guessing from context vocabulary activity
5. Discussion – vocabulary learning strategies and vocabulary feature analysis
6. Group activity – feature analysis and presentation
7. Review/preview & homework
After going over the agenda, pass out the POTENTIAL CLIENT VOICEMAIL transcript
from the previous lesson, with the previous lesson vocabulary underlined.
II. PROVIDING INPUT:
Their task is to infer the meaning of the underlined words. Give the students a few
moments to guess the first underlined word. Then, ask if anyone knows what the word
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means. Ask if the student already knew the word, or if he/she figured it out. Use this to
lead into a discussion of vocabulary guessing strategies, mention strategies, such as:
 Word parts (affixes, suffixes, prefixes)
 Grammatical classes
 Syntax information
 Background knowledge
Then, have the students walk around and collaborate and negotiate the rest of the
unknown unit vocabulary items with fellow classmates. Walk around and help guide
students. Encourage them to talk to multiple students. After the allotted time, go over the
meanings as a class. Have them write the information in their vocabulary notebooks.
Then, move on to the guided practice.
III. PROVIDING GUIDED PRACTICE:
Get the students into pairs. Hand out GUESSING FROM CONTEXT A and B. The task
is to have them read the dialogue aloud to each other and identify the unit and lesson
vocabulary. Have them talk about differences in vocabulary and what they think the new
words mean. In pairs, have the students come up with a unique, but content relevant
sentence for each new lesson vocabulary word found. Walk around and ask guiding
questions to help steer students in the correct direction. When they are finished, put
GUESSING FROM CONTEXT A on the overhead. Ask a volunteer to underline all of
the vocabulary words. Then, have another volunteer begin reading the paragraph. Stop
him/her when he/she gets to the first underlined word. Generate an explanation with the
class that describes what is happening in the sentence. Discuss the meanings of the new
lesson vocabulary, as well as possible differences in the meanings of prior lesson
vocabulary. Also, cover the information required for a vocabulary feature analysis (see
lesson materials), but only for the prior lesson vocabulary. Repeat process for
GUESSING FROM CONTEXT B. After this, ask for volunteers to read their created
sentences aloud. Have fellow students make corrections about usage. Collect the
sentences and then combine the pairs into groups of four.
IV. PROVIDING APPLICATION AND EXTENSION:
Hand each group VOCABULARY IN CONTEXT. The students‘ task is to take turns
reading the passages, and underline the unit vocabulary as they appear. Then, they must
conduct a feature analysis for each of the new lesson vocabulary found. Refer to the
lesson materials for an example of the information to be included in the analysis. Have
them put together a quick PowerPoint presentation of the information. Each slide will
cover one feature of the analysis. When they are done, have them present to the class.
While each group is presenting, have students take notes on overall presentation and
language performance, and differences in opinions about the information found. After all
of the groups, have the students share their overall presentation and language
performance notes. Offer advice and insights as you deem necessary. Then, go over the
vocabulary information with the class. Encourage students to negotiate subtle differences
in their personal meanings. Make sure all the correct vocabulary information is covered,
and have them write it in their vocabulary notebooks as homework.
84
V. PROVIDING ASSESSMENT AND EVALUATION:
Assess the presentations against the lesson objectives and language presentation rubric.
Wrap up the lesson and tie it to the next session. For homework, have the students update
their flash cards as needed and make journal entries for the new vocabulary items.
LESSON MATERIALS:
POTENTIAL CLIENT VOICEMAIL – TRANSCRIPT
―Hi. My name is (client name). I am looking for professional financial help. My last
financial advisor lost a lot of money in bad investments. If you can help me with my
current situation, I will hire you for future work. I am looking to purchase a plot of land
to build a new house. The land costs $175,000. I need your help in evaluating the
available loans offered by the banks here in town. I will Skype you Friday morning and
give you a summary of my personal and financial information. I want a decision on
which loan to take by the end of the day Friday. Talk to you then.‖
GUESSING FROM CONTEXT A
Directions: Read the passage aloud. Underline the unit vocabulary as you hear them. Use
the context of the sentence and paragraph to find the meaning of the word. For each new
lesson vocabulary word found, write a new sentence of your own.
A professional carpenter is starting a business out of his own home. He only needs one
more piece of equipment before he can open the business. This piece of equipment also
happens to be the most expensive, costing $25,000. He spent weeks searching through the
available models, but this was the cheapest one he found. He doesn‘t have enough money
to purchase the piece of equipment right away, so he goes to a bank and meets with a
loan officer. The loan officer carefully reviews a summary of his financial history. After a
brief evaluation, the officer makes a decision and denies the carpenter a loan.
GUESSING FROM CONTEXT B
Directions: Read the passage aloud. Underline the unit vocabulary as you hear them. Use
the context of the sentence and paragraph to find the meaning of the word. For each new
lesson vocabulary word found, write a new sentence of your own.
Ryan is looking for a new job. His former boss said that he lacked the maturity to deal
with his clients. Without any income, Ryan needs to find a job fast. In college, he worked
as a professional chef. After searching available job listings on the internet, he couldn‘t
find anything. He needs to find a way to earn some cash, or he won‘t be able to pay his
required expenses.
85
VOCABULARY IN CONTEXT
Directions: Take turns reading the following passages. Then, underline any unit
vocabulary. For the lesson vocabulary, complete a feature analysis. For each feature,
create a PowerPoint slide to present to the class
1. Jordan is a professional mechanic. He doesn‘t make a lot of money, but he loves
working on cars. To increase his income, he buys old cars to fix and resell. Last week, he
found the perfect project for $8,000, a 1958 Corvette. The deal would only be ideal if the
car was purchased with cash. Otherwise, he would pay almost $3,000 extra.
2. This past year, Jordan did not keep good track of his finances. After looking at a
summary of his bank accounts, he realized that he did not have enough money to cover
his loan payment obligations. Unless he pays more attention, his loan will extend past
maturity.
3. Ken teaches an investment course at the local university. His students complain
about the class requirements. They say the class is too hard. He always tells his students
that success in a profession or in life requires an investment of effort.
4. As a mother, Jane has a lot of obligations. Her family always comes first, but as a
professional pilot, she is on the road all the time. This year she is thinking of quitting, but
it is hard to walk away from such a high annual income. After evaluating the decision,
she decided to quit in order to spend more time with her family.
Excerpt from Vocabulary Journal
Word Family
Part of
Members Pronunciation Speech Affix(es) Word Meaning(s) Synonym(s) Example Sentence
86
UNIT 1 - LESSON 3
LESSON DURATION:
60 minutes
LESSON TOPIC:
Calculating future value
LESSON RATIONALE:
This lesson is designed to introduce the calculation of future value.
LESSON GOALS:
The goal is to learn how to calculate simple future values of investments and loans.
Calculating future value is an essential aspect of determining investment value and loan
risk.
LESSON OBJECTIVES:
The students will be able to calculate 70% of the future value problems on the worksheet.
Using the lesson vocabulary, students must identify at least three similarities and
differences between loans and investments, and three advantages and disadvantages
between loans and investments.
LESSON VOCABULARY – HEADWORDS:
Assume [34], Calculate [44], Compound [105], Formula [246], Minus [206], Period [16],
Plus [143], Principal [95], Sum [164]
I. SETTING THE STAGE:
To set the stage, have the CROSSWORD PUZZLE already on the students‘ desks. As the
students settle in, have them complete the quick write, as you check their homework.
Then, go over the agenda, which is as follows:
1. Quick write/homework
2. Welcome
3. Objectives
4. Crossword puzzle
5. Discussion – calculating future value
6. Future value worksheet
7. Writing activity
8. Review/preview & email homework
After the agenda, have the students complete the TIME VALUE OF MONEY
CROSSWORD PUZZLE. The crossword puzzle requires knowledge of the definitions
for all of current unit vocabulary, as well as the current lesson vocabulary. After they are
done, have them partner grade the crossword puzzles. Go over the answers as a class and
use the unknown definitions of the new vocabulary to lead into the next discussion.
87
II. PROVIDING INPUT:
Start a discussion on future value. Incorporate the lesson and current unit vocabulary as
often as possible. Make sure that the students take detailed notes. Begin with a review of
the basic idea, and then use the following outline as a guide:
 Review the general concept of future value
 Investing and borrowing
 Differences/Similarities
 Advantages/Disadvantages
 Interest
 Compounding vs. simple
 Frequency of compounding
 Periods
 Maturity
 Payments
 Calculating future value
 Equations
 Simple – FV = PV * (1 + i*n)
 Compound – FV = PV * (1+ i)n
 Continuous – FV = PV * ei*n
 How do interest, periods, payments and maturity influence future value?
Incorporate as much student input as possible. Although the information is new, try to let
the students lead the discussion as much as possible. Use examples relevant to the
population of your class. After the discussion, hand out the CALCULATING FUTURE
VALUE WORKSHEET.
III. PROVIDING GUIDED PRACTICE:
The CALCULATING FUTURE VALUE WORKSHEET will require students to
calculate the future value of various loans and investments. This worksheet will be less
oriented on language and more focused on the calculation of future value. After students
are done, call on volunteers to work the problems out on the whiteboard.
IV. PROVIDING APPLICATION AND EXTENSION:
The next activity is a writing activity. Students must write about three similarities and
differences between loans and investments. They will also discuss three advantages and
disadvantages of loans and investments, and why knowing this is important. The writing
assignment must contain all of the unit vocabulary so far. Have students hand them in
when they are finished.
V. PROVIDING ASSESSMENT AND EVALUATION:
The CALCULATING FUTURE VALUE WORKSHEET and the writing activity will
assess the objectives. Wrap up the lesson and introduce the upcoming lesson. For
homework, have the students update their flash cards as needed and make journal entries
for the new vocabulary items.
88
LESSON MATERIALS:
THE TIME VALUE OF MONEY
CROSSWORD PUZZLE
Use the word bank and clues to complete the crossword puzzle.
1
Word
Bank
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
21
22
Clues
Across
2. A portion of time
4. To buy
7. Initial amount of loan or investment
11. The end of a loan
12. The greatest amount possible
14. Ready for immediate use
15. To put money to use in something
offering potential return
17. To take as true
18. Unchanging
20. To add to
22. Once a year
20
Annual
Assume
Available
Calculate
Cash
Compound
Constant
Evaluate
Financial
Goal
Income
Invest
Lend
Maturity
Maximum
Minimum
Percent
Period
Principal
Purchase
Require
Sum
Summary
Down
1. To order to do something
3. 1/100
5. To determine the value of
6. Payment for goods or services
8. To solve
9. To combine into a total
10. Relating to money
13. The smallest amount possible
16. Physical money
19. Covering the main points
21. Desired outcome
89
THE TIME VALUE OF MONEY
CROSSWORD PUZZLE - ANSWERS
1
r
p e
q
4
p u
i
7
p r
e
2
3
6
i
n
c
o
11
m a
e
21
g
o
22
a
l
p
e
r
c
e
n
t u
r
i
o d
r
c
h a
i
10
f
r i t y
n
14
a v a i l a
n
c
i
18
19
c o n s t a n t
u
l
m
m
n n u a l
r
y
Clues
Across
2. A portion of time (period)
4. To buy (purchase)
7. Initial amount of loan or investment
(principal)
11. The end of a loan (maturity)
12. The greatest amount possible
(maximum)
14. Ready for immediate use (available)
15. To put money to use in something
offering potential return (invest)
17. To take as true (assume)
18. Unchanging (constant)
20. To add to (compound)
s
5
e
v
8
n c i p a l
a
l
l
u
12
c
m a x i 13m u
u
t
i
15
b l e
e
i n v
16
a
c
i
17
t
a s s u m e
e
s
u
20
h
c o m p
9
s
u
m
e
s
t
l
e
o u n d
d
22. Once a year (annual)
Down
1. To order to do something (require)
3. 1/100 (percent)
5. To determine the value of (evaluate)
6. Payment for goods or services (income)
8. To solve (calculate)
9. To combine into a total (sum)
10. Relating to money (financial)
13. The smallest amount possible
(minimum)
16. Physical money (cash)
19. Summary of main points (summary)
21. Desired outcome (goal)
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CALCULATING FUTURE VALUE WORKSHEET
Answer the following questions in complete sentences. Assume no taxes, and show your
work for all calculations. Use the back of the page for extra space.
The Power of Compounding
1.) Two investments of $1,000 both earn 6% annual interest. Investment A earns
compounding interest, and Investment B earns simple interest. Use this information to fill
out the following table.
Year
Investment A
Investment B
Start Value
End Value
Start Value
End Value
$ 1,000.00 $ 1,060.00 $ 1,000.00 $ 1,060.00
$ 1,060.00 $ 1,123.60 $ 1,000.00 $ 1,120.00
1
2
3
4
5
6
7
8
9
10
2.) What is the difference in the value of the investments in question 1 after…
(a) 50 years?
(b) 100 years?
Frequency of Compounding
3.) What is the value of a $500 investment ten years from now if it receives 7 percent
annual return compounded…
(a) annually?
(b) quarterly?
(c) monthly?
91
(d) continuously?
Loans
Use the table to calculate the future value of the following loans at maturity. Assume that
no taxes and no payments are made until maturity.
Loan A
Loan B
Loan C
Loan D
Principal
$
55,000 $
75,000 $
65,000 $
45,000
Interest Rate
5.25%
6.50%
4.75%
6.00%
% Increase
0.5% per yr.
None 3% after 3 yrs.
None
Compounding
Quarterly
Monthly
Annually Continuously
Frequency
Length
4 years
10 years
7 years
15 years
4.) Loan A
5.) Loan B
6.) Loan C
7.) Loan D
92
CALCULATING FUTURE VALUE WORKSHEET – ANSWERS
The Power of Compounding
1.)
Year
1
2
3
4
5
6
7
8
9
10
Investment A
Start Value
End Value
$ 1,000.00 $ 1,060.00
$ 1,060.00 $ 1,123.60
$ 1,123.60 $ 1,191.02
$ 1,191.02 $ 1,262.48
$ 1,262.48 $ 1,338.23
$ 1,338.23 $ 1,418.52
$ 1,418.52 $ 1,503.63
$ 1,503.63 $ 1,593.85
$ 1,593.85 $ 1,689.48
$ 1,689.48 $ 1,790.85
Investment B
Start Value
End Value
$ 1,000.00 $ 1,060.00
$ 1,000.00 $ 1,120.00
$ 1,000.00 $ 1,180.00
$ 1,000.00 $ 1,240.00
$ 1,000.00 $ 1,300.00
$ 1,000.00 $ 1,360.00
$ 1,000.00 $ 1,420.00
$ 1,000.00 $ 1,480.00
$ 1,000.00 $ 1,540.00
$ 1,000.00 $ 1,600.00
2.) (a) The difference in value after 50 years is $14,420.
Investment A = $1,000 * (1 + 6%*50) = $4,000
Investment B = $1,000 * (1 + 6%) 50 = $18,420.15
(b) The difference in value after 50 years is $332,302.08.
Investment A = $1,000 * (1 + 6%*100) = $7,000
Investment B = $1,000 * (1 + 6%) 100 = $339,302.08
Frequency of Compounding
3.) (a) FV = 500*(1 + 7%)^10 = $983.58
The future value of the investment compounding annually is $983.58.
(b) FV = 500*(1 + 7%/4)^40 = $1,000.80
The future value of the investment compounding quarterly is $1,000.80.
(c) FV = 500*(1 + 7%/12)^120 = $1,004.83
The future value of the investment compounding monthly is $1,004.83.
(d) FV = 500*e^7%*10 = $1,006.88
The future value of the investment compounding continuously is $1,006.88.
Loans
4.) The future value of Loan A at maturity is $68,769.62.
FV after year 1 = $55,000 * (1 + 5.25% ÷ 4)4 = $57,944.85
FV after year 2 = $57,944.85 * (1 + 5.50% ÷ 4)4 = $61,198.15
FV after year 3 = $61,198.15 * (1 + 5.75% ÷ 4)4 = $64,793.65
93
FV after year 4 = $64,793.65 * (1+ 6.00% ÷ 4)4 = $68,769.62
5.) The future value of Loan B at maturity is $143,413.78.
FV after year 10 = $75,000 * (1 + 6.50% ÷ 12)120 = $143,413.78
6.) The future value of Loan C at maturity is $100,703.50.
FV after year 3 = $65,000 * (1 + 4.75%) 3 = $74,709.43
FV after year 7 = $74,709.43 * (1 + 5.75%) 4 = $100,703.50
7.) The future value of Loan D at maturity is $110,682.14.
FV after year 7 = $45,000.00 * e 6%*15 = $110,682.14
94
UNIT 1 - LESSON 4
LESSON DURATION:
60 minutes
LESSON TOPIC:
Conversing with financial institutions and clients
LESSON RATIONALE:
This lesson is designed to prepare students for dialogues with a potential client.
LESSON GOALS:
The goal is to familiarize the students with inquiring about financial information over the
phone, using the information to make the best decision for the client.
LESSON OBJECTIVES:
The students will write a paragraph explaining five personal financial factors that
influence loan decisions. The paragraph must contain all of the unit vocabulary.
LESSON VOCABULARY – HEADWORDS:
Constant [172], Goal [154], Maximum [160], Minimum [161]
I. SETTING THE STAGE:
Have the students complete a quick write and then go over the agenda.
1. Quick write/homework
2. Welcome
3. Objectives
4. Discussion – personal financials and loans
5. Conversation sequencing activity
6. Role playing activity
7. Writing assessment
8. Wrap up and homework
After the agenda, start a discussion on loan shopping.
II. PROVIDING INPUT:
 Use the following outline as a guide:
 Loan Shopping
 What is important to look for?
 Interest rates
 Frequency of interest accrual
 Time to maturity
 Minimum payments
 How to ask about these things
 Quickly computing loan information and repayment
95
 Client considerations, talking with the client
 Loan goals
 Income
 Financial future
 Will client have a reliable stream of income?
 Length of loan
 Where to look?
 One bank?
 Emailing loan officers
 Discounts for multiple accounts?
 Same bank savings
Once all these things are discussed, get the students into pairs and hand out the
SEQUENCING ACTIVITY.
III. PROVIDING GUIDED PRACTICE:
The next activity will require students to put a cut up conversation between a client and a
financial advisor in order. Once they have the conversation sorted, they must pull out the
necessary information to answer the questions about the loan. Once the students are done,
ask for two volunteers to read the conversation. Then, go over the answer as a class.
IV. PROVIDING APPLICATION AND EXTENSION:
Have the students get into groups of three. Each student needs to create a pretend client.
Have the students make up the follow information about the client: name, family
members, profession, annual income, monthly expenses, what they need a loan for,
principal amount, amount able to make towards payments, factors affecting minimum
payments, loan goals. Use the information for the unit task as guidance. The task for the
students is to ask questions to find out the all of the information about the client. One
student will play the client, one student will play the financial advisor, and the other
student will watch and take notes on how the other two did. Then, they will rotate. Walk
around and give guidance as the students role play. After they are done, use the students‘
notes to talk about questions, comments, and concerns.
V. PROVIDING ASSESSMENT AND EVALUATION:
Have the students write one paragraph discussing five factors affecting the decision in
choosing a loan. The writing should include all of the unit vocabulary.
After they are done writing, wrap up the lesson and give a preview of the next session.
Hand out the unit task and have students complete Part 1 as homework. Also, have the
students make sure they have all of the flashcards and journal entries completed.
96
LESSON MATERIALS:
SEQUENCING ACTIVITY
Put the following conversation in order. Then, pull out the necessary information to
answer Bob‘s final questions. Answer the questions in complete sentences below. Show
your work for all of the calculations.
Question 1 –
Answer:
Question 2 –
Answer:
C: Hey Dave, how is it going?
F: Good, Bob. I took the family to see a Van Morrison tribute band over the weekend.
How are you?
C: I am also doing well. I spent the whole weekend fishing. Did you get a chance to
evaluate the list of available loans yet?
F: I did. I think your best choice is with TriArea Bank.
C: Well, why is that?
F: You said you wanted to pay the minimum amount of interest and still be able to pay
the loan off in 10 years.
C: And this loan will allow that? What is the interest rate?
F: It will. The loan was listed at 6.0%, but because you are already a member of the
bank, they are taking 0.5% off the starting interest rate. So for this loan, you are looking
at 5.5% compounded semiannually.
C: That rate sounds a little too good to be true.
F: Well, each year your interest rate will increase 0.25%.
C: I will be able to pay the loan off in 5 years, even with the rate increases? Won‘t my
minimum payments be expensive?
97
F: No, with your annual income you will easily be able to cover the obligated payment.
Your payment will go towards the interest for the period, and the rest will go towards the
principal.
C: How much is that? I would like to start thinking about ways to save money?
F: To pay off the loan at maturity you will be required to make semiannual payments of
$1,275. You will be able to pay the balance with one smaller payment in the first period
of the tenth year.
C: Ok. This $10,000 will really help with all of the home improvements. Before I go,
what is the sum of interest that I will be paying? Also, how much will the final payment
be?
F: I am glad to help. I have to head to a meeting, I‘ll email the details afterwards. I will
talk to you later. Bye.
Answers to the calculations:
Starting Principal
$10,000.00
$9,025.00 [10,275-1,250]
$8,023.19 [9273.19-1,250]
$6,995.83 [8245.83-1,250]
$5,939.97 [7189.97-1,250]
$4,856.28 [6106.28-1,250]
$3,742.26 [4992.26-1250]
$2,597.98 [3847.98-1250]
$1,421.37 [2671.37-1250]
$211.88 - Last Payment
Interest Paid
End Balance
(Starting-End)
$10,275.00 [10000*(1+5.5%/2)]
$275.00
$9,273.19 [9025*(1+5.5%/2)]
$248.19
$8,245.83 [8023.19*(1+5.55%/2)] $222.64
$7,189.97 [6995.83*(1+5.55%/2)]
$194.13
$6,106.28 [5939.97*(1+5.60%/2)] $166.32
$4,992.26 [4856.28*(1+5.60%/2)] $135.98
$3,847.98 [3742.26*(1+5.65%/2)] $105.72
$2,671.37 [2597.98*(1+5.65%/2)] $73.39
$1,461.88 [1421.37*(1+5.70%/2)]
$40.51
Total Interest - $1,461.88
98
UNIT 1 - LESSON 5
LESSON DURATION:
60 minutes
LESSON TOPIC:
Acquiring a client
LESSON RATIONALE:
This lesson is designed to mimic a real-world task, in an authentic context.
LESSON GOALS:
The goal is to apply previous unit information to an authentic interaction with a ―real‖
client.
LESSON OBJECTIVES:
The student will be able to calculate the future value of five loans and select the best loan
for the client. The student will be able to write a justification statement using all of the
unit‘s vocabulary, explaining why this loan is the most appropriate for the client. They
will be able to convey and defend this justification through PowerPoint.
LESSON VOCABULARY – HEADWORDS:
Annual [25], Assume [35], Available [76], Cash [5], Compound [102], Constant [165],
Evaluate [132], Finance [4], Formula [246], Goal [148], Income [17], Invest [1], Mature
[29], Maximum [153], Minimum [154], Minus [206], Obligated [101], Percent [2],
Period [16], Plus [143], Principal [95], Professional [149], Purchase [22], Require [26],
Sum [157], Summary [127]
I. SETTING THE STAGE:
To set the stage for this lesson, have the students complete the quick write as you send
the reply emails from the homework assignment. After the quick write, go over the
agenda.
 Quick write/homework
 Welcome
 Objectives
 Check email activity
 Client presentation
 Group discussions – what does this client need?
 Group PowerPoint assignment
 Presentations
 Unit wrap up
After the agenda, hand out OBTAINING A CLIENT – LOAN SELECTION. The rest of
the class is devoted to the completion of this unit task.
99
UNIT 1 TASK
Obtaining a Client-Loan Selection
Part 1 – Loan Shopping
Write emails to the loan officers at Old Bank of the West, TriState Bank, and Liberty
Bank. Make sure you sound as professional as possible. Find out the following
information about their available loans: interest rates, member rates, change in interest
rates, compounding frequency, minimum payment requirements, and loan length. Send
them to (insert your email address) and I will forward them to the correct people.
Part 2 – Client Information
Listen to the client to find out the following information:
Name:
Family members:
Hobbies:
Profession:
Annual Income:
Current Bank:
Desired Loan Amount:
How much of the loan is he able to pay each month?
What are his goals for the loan?
Part 3 – PowerPoint Presentation
In your groups, use your knowledge of the future value of money, and the client
information decide which of the available loans is best for the client. Create a group
PowerPoint presentation that contains: client summary, loan summaries, and justification
of the selected loan. All of the unit vocabulary must appear either on the PowerPoint
slides or in the presentation.
100
UNIT 1 TASK
Teacher Directions
Hand out the following assignment at the end of Lesson 4. The students need to complete
Part 1 of the task as homework.
Part 1 – Loan Shopping
You will be posing as all of the loan officers. Tell them you will forwarding the emails to
the appropriate loan officers. Use the table on the next page to answer the emails, but
don‘t send them until the beginning of the last session. Make your responses sound as
authentic as possible. Answer only the questions that the students ask, or the ones that
you can understand. If they do not ask for all of the necessary information, they will need
to send another email. Have the students check their email at the beginning of the last
session. Have them send reply emails as necessary.
Part 2 – Client Information
Have the client read the following script to your class via Skype, and have him/her
answer any questions from the class afterwards. They will need to make up family
members. If a Skype meeting isn‘t possible, create an audio of the transcript to use as a
voicemail or put the information in an email.
Transcript – “Hello all, I hope you’ve been having a good week. I’ve prepared a
summary of personal and financial information that I assume you will need to select the
best loan. Luckily, the price of the land dropped by $25,000 this week, so I will only need
a $150,000 loan. My current annual income is $75,000, which goes directly into my
account at TriState Bank. After all of my required monthly expenses, I am able to put
30% of my annual income towards monthly payments. I want to be able to pay off this
loan in less than 11 years, paying the minimum amount of interest. Is there any other
information you need?”
Part 3
After the client presents, have the students get into groups to discuss the loan options and
client information. Once they have completed the PowerPoint and are ready to present,
pull up the following email from Ron on the projector.
All,
I am stuck at work and will be unable to attend our meeting. I have spoken with your
manager (your name) and have worked out a solution. (He/she) will videotape your
presentations and email them to me tonight. I will look at them over the weekend and
follow-up with you all on Monday. I apologize for the inconvenience.
(Client Name)
Videotape the students‘ presentations. Have them send you the PowerPoint at the end of
the class. Use both of these to assess the unit objectives.
101
Available Bank Loans
Bank of the West
Loan Amount
Interest Rate
Rate Change
Member Rate
Compounding
Frequency
Payment
Requirements
$
150,000
6%
10% after 5 yrs.
Annually
$
150,000
3.40%
3.35%
Monthly
Yearly payments of 15k,
plus outstanding interest
Lump sum at
maturity
10 yrs.
10 yrs.
$
150,000
7%
8% after 5 yrs.
Annually
$
150,000
3.40%
3.34%
Quarterly
Yearly payments of 15k,
plus outstanding interest
Lump sum at
maturity
10 yrs.
10 yrs.
10% of
outstanding
balance annually
-
5% after 5 yrs.
Annually
$
150,000
3.35%
Continuously
$
150,000
9%
Annually
Payment
Requirements
Yearly payments of 15k,
plus outstanding interest
Lump sum at
maturity
Loan Length
10 yrs.
10 yrs.
10% of
outstanding
balance annually
-
Loan Length
TriState Bank
Loan Amount
Interest Rate
Rate Change
Member Rate
Compounding
Frequency
Payment
Requirements
Loan Length
Liberty Bank
Loan Amount
Interest Rate
Rate Change
Member Rate
Compounding
Frequency
$
150,000
$
150,000
Annually
10% of
outstanding
balance annually
$
150,000
Annually
102
UNIT 2 – OVERVIEW
UNIT DURATION:
Five 60 minute class lessons.
UNIT TOPIC:
The Time Value of Money – Present Value
UNIT GOALS:
The goal is to learn the necessary language, concepts, and skills involved with present
value.
UNIT RATIONALE:
Understanding the effects economic factors on the value of money is crucial in the
selection of investments. Furthermore, the ability to research information and make
predictions are necessary academic and professional skills.
UNIT TASK
The culminating unit task is comprised of three parts. The first part requires students to
listen to a potential client for applicable information. The second part requires them to
use client information to research current and historical economic conditions to predict
the future costs associated with attending college. The final part requires them to use this
information to select the right investment for the client. They must write an investment
defense report that includes: a client summary, industry research and predictions, and
present value calculations to justify the selected investment.
UNIT OBJECTIVES:
The student will be able to research and predict estimated costs of college tuition and
rent. The student will be able to calculate the present value of five different investments
to select the most appropriate investment for the client. They will be able to write an
investment defense report using all of the unit vocabulary.
UNIT VOCABULARY – HEADWORDS:
Achieve [207], Affect [118], Approach [88], Compute [43], Concept [104], Discount
[33], Economy [15], Equivalent [179], Estimate [36], Factor [55], Generate [110],
Individual [44], Inflation [60], Initial [50], Involve [77],Objective [42], Overall [84],
Portion [224], Predict [140], Premium [38], Relevant [171], Specific [69], Trend
[117],Vary [49]
I. SETTING THE STAGE (DAY 6):
Overview
 Client email
 Introducing unit topic, task, and vocabulary
 Client email exercise
 Hangman activity
103
 Word scramble activity
 Tying lesson vocabulary to unit topic
 Review/preview & homework
Description
This lesson sets the stage for the entire unit. It starts off with a ―client email‖, which
states the previous performance of his new financial advising staff, and outlines the unit
task while introducing lesson vocabulary. The lesson uses basic vocabulary activities to
reinforce recognition and pronunciation. It also builds on the lesson vocabulary and gives
a basic introduction to the unit topic and concepts through a classroom discussion. The
discussion relates new concepts to concepts used in the first unit. The lesson ends by
introducing the homework and the following lesson. The homework requires students to
create flash cards for the current lesson vocabulary.
II. PROVIDING INPUT (DAY 7):
Overview
 Quick write warm up
 Vocabulary learning strategy discussion – semantic maps
 Semantic map group exercise
 Map presentations
 Taboo vocabulary game
 Review/preview & homework
Description
This lesson begins with a quick write which requires students to summarize and ask
questions about the previous lesson while concurrently using unit vocabulary. It builds on
the previous lesson, and introduces a new vocabulary learning strategy. The lesson
reviews previous unit vocabulary, and has students pull the new lesson vocabulary from
authentic scenarios that incorporate new unit material. The lesson requires an extension
of the vocabulary and utilizes student input as the foundation for a vocabulary game. The
lesson ends by introducing the homework, and the following lesson. The homework
requires students to create flash cards and journal entries for the current vocabulary.
III. PROVIDING GUIDED PRACTICE (DAY 8):
Overview
 Quick write warm up
 No vowels vocabulary exercise
 Calculating present value discussion
 Present value worksheet
 Cloze assessment
 Review/preview & homework
104
Description
This lesson begins with a quick write which requires students to make predictions about
how to calculate present value. The lesson reviews previous vocabulary and introduces
lesson vocabulary through a no vowels vocabulary exercise. The predictions from the
quick write will lead into a discussion of the more advanced unit concepts and equation.
This lesson focuses on the language and equations necessary to calculate the present
value of an investment. The worksheet provides practice for calculations and reinforces
fundamental topic concepts. The cloze exercise requires students to demonstrate
knowledge of the language and concepts. The lesson ends with a review and an
introduction to the homework and the following lesson. The homework involves creating
flash cards and journal entries, as well as extra practice calculating present value.
IV. PROVIDING APPLICATION AND EXTENSION (DAY 9):
Overview
 Quick write warm up
 Factors influencing present value discussion
 Video – the economy and inflation
 Jigsaw activity
 Industry research exercise
 Group discussions – industry predictions
 Group summary presentations
 Review/preview
Description
This lesson begins with a quick write which requires students to brainstorm factors that
affect present value. This lesson reviews previous vocabulary and concepts, and discusses
real world factors affecting these concepts. It incorporates the lesson vocabulary through
authentic video and professional scenarios. The lesson provides a research component
that applies unit concepts to an important academic and professional skill. The lesson also
incorporates group discussions and presentations to promote negotiations of concepts and
language. The extension of the language and material prepares students for the
culminating unit task in the next lesson. The lesson ends with a review and discussion of
the culminating task.
V. PROVIDING ASSESSMENT AND EVALUATION (DAY 10):
Overview
 Quick write warm up
 Client voice mail
 Research activity
 Report work time
 Unit review/preview & homework
105
Description
This lesson begins with a quick write which requires that students write down questions
and concerns about the upcoming task. The remainder of the lesson will be the
culminating unit task ―MAKING THE CLIENT HAPPY – INVESTING FOR THE
FUTURE.‖ The task incorporates all of the topics and vocabulary covered in the unit.
The lesson ends with a unit review, and a preview of the upcoming unit. The homework
is to finish the investment defense report for the next class.
106
UNIT 2 TASK
Making the Client Happy – Investing for the Future
Part 1 – Client Information
Listen to the voicemail left by your client. Pull out the information necessary to complete
his request.
Part 2 – Cost Research
The client wants to know the total cost of the selected college‘s tuition, the selected
vehicle, and the selected house 10 years from now. In order to predict these costs, use the
internet to research the necessary tuition prices and average house prices for the past 10
years. Given the rate of price change, predict the future cost of the selected college‘s
tuition, and the selected house in year 10. Assume the economy experiences no inflation
during years 1-10.
Part 3 – Investment Selection and Defense Report
Your investment company offers the investments listed in the table below. Use the
predicted cost from Part 2 to calculate the present value of each investment. Then, use the
information from the client to choose the right investment. Summarize the research, your
predictions, and your calculations into a report to defend the selection of the investment.
Incorporate all of the unit vocabulary.
2
Investments
3
4
5
Cost
$38,000.00
Rate
7%
Compounding
Rate
Quarterly
$42,000.00
6.50%
$45,000.00
8.25%
$35,000.00
6.75%
$40,000.00
7.25%
Monthly
Annual
Monthly
Quarterly
FV
$65,000.00
$90,000.00
$80,000.00
$75,000.00
1
$90,000.00
107
UNIT 2 TASK
Teacher Directions
Part 1 – Client Information
Have the client record an audio of the following transcript. Play the ―client voicemail‖ at
the beginning of the task. The information in parenthesis can be exchanged for a different
school.
“Hello all. I wanted to thank you again for the great loan advice last week. My daughter
Shannon is turning eight years old next week. She has already achieved so much in
school that I am starting to think of her future. In 10 years, she will be attending the same
school as me, (California State University Chico). I want to make sure that I am able to
cover a large portion of the costs. I want to be able to cover all four years of her tuition,
pay for her first year’s rent of a house or apartment, and $5,000 emergency money. She
will be required to get a job to pay for everything else. Next week, I want to make an
investment that will generate enough income to cover the overall cost 10 years from
now.”
Play the audio until the students have pulled out the necessary information.
Parts 2 & 3
Refer to Unit 2 task.
108
UNIT 3 – OVERVIEW
UNIT DURATION:
Five 60 minute class lessons.
UNIT TOPIC:
Risk and Return
UNIT GOALS:
The goal is to learn the necessary language, basic concepts, and skills involved with
investment risk. This lesson also seeks to introduce students to charitable giving.
UNIT RATIONALE:
Understanding how risk influences returns is crucial when investing someone else‘s
money. Understanding of charitable organizations is also an important part of business
and life.
UNIT TASK
This unit task is three parts. The first part requires students to research and present a
select charity. The second part requires students to research historical stock prices to
determine risk and select an investment. The third part requires the students to put
together a research report that includes charts and graphs.
UNIT OBJECTIVES:
The student will be able to calculate the risk of ten investments. The student will be able
to write a research report incorporating all of the unit vocabulary.
UNIT VOCABULARY – HEADWORDS:
Alternative [202], Analyze [28], Assess [185], Benefit [68], Bond [3], Coefficient [229],
Compute [43], Consistent [158], Deviation [66], Distribute [116], Fund [7], Impact [203],
Indicate [73], Normal [99], Potential [70], Project [24], Random [227], Retain [178],
Significant [91], Source [78], Speculate [163], Statistic [177], Transfer [120], Volatile
[74], Whereas [143]
I. SETTING THE STAGE (DAY 11):
Overview
 Introducing unit topic, task, and vocabulary
 Client visit
 Odd word out vocabulary activity
 Vocabulary sorting activity
 Tying lesson vocabulary to unit topic
 Review/preview & homework
109
Description
This lesson sets the stage for the entire unit. It starts off with the client, as a guest
speaker. He explains the next task for his financial advising staff. His father passed away
and he inherited a large amount of money. He wants to invest the money with the
proceeds going to a charity. His presentation outlines the unit task while introducing
lesson vocabulary. The lesson incorporates basic vocabulary activities to promote
recognition and pronunciation. It also builds on the lesson vocabulary and gives a basic
introduction to the unit topic and concepts through a classroom discussion. The lesson
ends by introducing the homework, and the following lesson. The homework requires the
students to create the flash cards for the unit vocabulary.
II. PROVIDING INPUT (DAY 12):
Overview
 Quick write warm up
 Fill in the blank vocabulary exercise
 Risk – discussion
 Dice probability exercise
 Who Wants to be a Millionaire – vocabulary game
 Review/preview & homework
Description
This lesson begins with a quick write which requires students to write for five minutes
about risk. It builds on the previous lesson, and introduces the concept of risk. It reviews
previous unit vocabulary and introduces new lesson vocabulary through the discussion
and probability activity. The lesson extends vocabulary and content through Vocabulary
Jeopardy. The activities promote hands on learning and group work. The lesson ends with
a review, and an introduction to the homework and the following lesson. The homework
requires students to create flash cards and journal entries.
III. PROVIDING GUIDED PRACTICE (DAY 13):
Overview
 Quick write warm up
 Fill-in-the-blank vocabulary activity
 Calculating risk and expected discussion
 Calculating risk and expected return worksheet
 Discussion and writing assessment – why is understanding risk important?
 Review/preview & homework – research standard deviation
Description
This lesson begins with a quick write, which requires students to discuss how risk can
affect investment decisions, while incorporating current unit vocabulary. The lesson
reviews previous vocabulary and introduces the lesson vocabulary through a fill-in-theblank activity. It uses the vocabulary activity to lead into a discussion of the more
advanced unit concepts and equation. This lesson focuses on the language and equations
110
necessary to calculate the risk and expected return of an investment. The worksheet
provides practice for calculations and reinforces fundamental topic concepts. Following
the calculations and advanced material, the lesson focuses on a discussion of how this
concept relates to the selection of investments. The writing activity requires students to
demonstrate knowledge of the language and concepts. The lesson ends with a review, and
an introduction of the homework and the following lesson. The homework involves
researching standard deviation, creating flash cards and journal entries, and extra practice
in calculating risk and expected returns.
IV. PROVIDING APPLICATION AND EXTENSION (DAY 14):
Overview
 Quick write warm up
 Cloze exercise
 Individual stock price and industry history research
 Stock graph group presentations
 Client role play activity
 Review/preview & homework – look up a charity
Description
This lesson begins with a quick write which requires students to use unit vocabulary to
discuss how risk and returns are important when investing other people‘s money. The
lesson reviews previous vocabulary and concepts, and extends them to more macro
concepts. It promotes autonomous research as well as group collaboration. The lesson
requires a demonstration of language skills and content knowledge. The extension of the
language and material prepares the students for the culminating unit task in the next
lesson. The lesson ends with a review and discussion of the unit task. The homework
requires students to complete Part 1 of the Unit 3 Task.
V. PROVIDING ASSESSMENT AND EVALUATION (DAY 15):
Overview
 Charity presentations
 Investment research
 Class investment and charity decision
 Investment research and defense report
 Unit review/preview & homework
Description
This lesson begins with presentations of their charity homework. The remainder of the
lesson will be the culminating unit task ―KEEPING THE CLIENT HAPPY –
INVESTING IN A STOCK.‖ The task incorporates all of the topics and vocabulary
covered in the unit. The lesson ends with a unit review, and a preview of the upcoming
unit.
111
UNIT 3 TASK
Keeping the Client Happy – Investing in a Stock
Part 1 – Charity Selection
Research a charity based in the United States. Make a PowerPoint presentation that
summarizes the following information: when and why the charity was founded, what the
charity does, and the impact the charity has on society. The PowerPoint should contain a
title page, one slide for each of the three topics, and pictures from the charity website.
Part 2 – Stock Research
The client received $150,000 after his father‘s passing, $100,000 of which is going to be
distributed to a charity that will be selected by your staff. He wants the remaining
$50,000 to be used to buy stock. He wants this to be a low-risk investment, but is open to
suggestions for significant returns. Research various industries and stocks to assess the
associated risks and returns. Calculate the risk of at least 10 stocks.
Part 3 – Investment Selection and Defense Report
Using the computed risk and knowledge of the industries researched; select an investment
that you feel is right for your client. Defend your selection in a report that includes: why
you selected the particular industry, a compare and contrast of your selected stocks, why
you selected the particular stock, and a graph comparing the risks of the 10 stocks you
selected.
112
UNIT 4 – OVERVIEW
UNIT DURATION:
Five 60 minute class lessons.
UNIT TOPIC:
Diversification
UNIT GOALS:
The goal is to learn the necessary language, basic concepts, and skills involved with
creating a diversified portfolio.
UNIT RATIONALE:
Understanding how to minimize risks associated with investments is a crucial aspect of
any financial career.
UNIT TASK
This unit task requires students to create a riskless investment portfolio and write
research report.
UNIT OBJECTIVES:
The student will be able to put together a risk-free investment portfolio. The student will
be able to make a portfolio presentation to the client, while incorporating all of the unit
vocabulary.
UNIT VOCABULARY – HEADWORDS:
Achieve [207], Adjust [216], Allocate [219], Announce [122], Anticipate [220],
Compensate [197], Consequence [233], Contribute [175], Counter [176], Crisis [123],
Cumulative [237], Eliminate [200], Error [192], Fluctuations [239], Guarantee [243],
Imply [160], Modify [221], Obtain [162], Obvious [152], Occur [126], Optimal [174],
Perspective [187], Portfolio [14], Proceed [137], Seek [155], Sequence [199], Stable
[181], Strategy [53]
I. SETTING THE STAGE (DAY 16):
Overview
 Introducing unit topic, task, and vocabulary
 Client voicemail
 Vocabulary Boggle
 Wheel of Fortune – vocabulary activity
 Tying lesson vocabulary to unit topic
 Review/preview & homework
Description
This lesson sets the stage for the unit with an ―angry client voicemail.‖ The voicemail,
although stern, outlines the unit task and introduces the lesson vocabulary. The lesson
113
uses basic vocabulary activities to reinforce recognition and pronunciation. It also builds
on lesson vocabulary and provides a basic introduction to the unit topic and concepts
through a classroom discussion. The lesson ends by introducing the homework and the
following lesson.
II. PROVIDING INPUT (DAY 17):
Overview
 Industry quick write
 Fill-in-the-blank vocabulary exercise
 Video – Industry fluctuations
 Class discussion – how do industry fluctuations affect risk?
 Writing activity
 Review/preview & homework
Description
This lesson begins with a quick write which requires students to come up with as many
industries as possible (auto, medical, clothing, etc.). It reviews previous unit vocabulary
and introduces new lesson vocabulary through a fill-in-the-blank vocabulary exercise.
The lesson introduces the new material through a video and extends it through a class
discussion. The writing activity requires students to demonstrate knowledge of the
language and the concepts. The lesson ends by introducing the homework, and the
following lesson.
III. PROVIDING GUIDED PRACTICE (DAY 18):
Overview
 Quick write warm up
 Vocabulary revision activity
 How to minimize risk through diversification discussion
 Diversifying a portfolio worksheet
 Discussion and writing assessment – what are the advantages/disadvantages of
diversification?
 Review/preview & homework
Description
This lesson begins with a quick write that requires students to summarize and ask
questions about the previous lesson while concurrently using unit vocabulary. The lesson
reviews previous vocabulary and introduces lesson vocabulary through a vocabulary
revision activity. The unknown meanings from the revision activity lead into a discussion
of the more advanced unit concepts and equations. This lesson focuses on the language
and equations necessary to create a diversified investment portfolio. The worksheet
provides practice for calculations and reinforces fundamental topic concepts. The writing
activity requires students to demonstrate knowledge of the language and concepts. The
lesson ends with a review and an introduction of the homework, and the following lesson.
The homework involves vocabulary review and diversification practice.
114
IV. PROVIDING APPLICATION AND EXTENSION (DAY 19):
Overview
 Quick write warm up
 Pyramid vocabulary game
 Group role play activity
 Industry analysis and investments review discussion
 Industry and investment research
 Review/preview & homework – industry and investment research
Description
This lesson prepares the students for the culminating unit task in the next lesson. It begins
with a quick write which requires students to use unit vocabulary to discuss how the
concepts and language covered thus far are applicable outside of the immediate
classroom. The lesson reviews previous vocabulary and concepts, and incorporates lesson
vocabulary through a vocabulary game. The lesson provides role playing to practice
language and concepts required to converse with the client. It also involves research that
will be used in the culminating unit task. The lesson ends with a review and discussion of
the culminating task, and the homework requires students to complete Part 1 of the Unit 4
Task.
V. PROVIDING ASSESSMENT AND EVALUATION (DAY 20):
Overview
 Quick write warm up
 Group portfolio and presentation creation
 Client portfolio meetings
 Final course review
 Survey of finance degrees and careers
Description
This lesson begins with a quick write which requires students write down all questions
and concerns about the upcoming task. The remainder of the lesson is the culminating
unit task ―DEALING WITH AN ANGRY CLIENT – PORTFOLIO
DIVERSIFICATION.‖ The task incorporates all of the topics and vocabulary covered in
the unit. The lesson ends with a final course review and a survey of potential finance
degrees and careers.
115
UNIT 4 TASK
Dealing With an Angry Client - Portfolio Diversification
Part 1 – Industry Research
Research a variety of industries. Using the information discussed in class, think about the
risks associated with investing in such an industry.
Part 2 – Stock Research
In your groups, discuss the findings from your industry research. Use the information to
research a variety of stocks. Calculate the risk of at least 10 stocks to find a group stocks
with varying risk. Use your knowledge of portfolio diversification to create a risk-free
portfolio.
Part 3 – Portfolio Presentation
Create a PowerPoint presentation that includes the following information: summary of
industry and stock research, risk comparisons, stock selections, and reasons for stock
selection. Incorporate all of the unit vocabulary. As a group, present the PowerPoint to
the client.
116
REFERENCES
California State Department of Education. (1985). Handbook for planning an effective
foreign language program. Sacramento: Author.
Coxhead, A. (2000). A new academic word list. TESOL Quarterly, 34(2), 213-238.
Graves, M. (2000). A vocabulary program to complement and bolster a middle-grade
comprehension program. In B. M. Taylor, M. F. Graves, & P. van den Broek
(Eds.), Reading for meaning: Fostering comprehension in the middle grades
(pp. 116-135). Newark, DE: International Reading Association.
Nagy, W. E., & Scott, J. A. (2000). Vocabulary processes. In M. L. Kamil, P. B.
Mosenthal, P D. Pearson, & R. Barr (Eds.), Handbook of Reading Research
(pp. 269-284). Mahwah, NJ: Lawrence Erlbaum Associates.
Nation, I.S.P. (2001). Learning Vocabulary in Another Language. New York: Cambridge
University Press.
Principal. (n.d.). Merriam-Webster online dictionary. Retrieved January 2, 2013, from
http://www.merriam-webster.com/dictionary/principal
Stahl, S. A., & Nagy, W. E. (2006). Teaching word meanings. Mahwah, NJ: Lawrence
Erlbaum.
West, M. (1953). A general service list of English words. London: Longman, Green.
Wilkins, D.A. (1972). Linguistics in Language Teaching. London: Arnold.
APPENDIX
118
TEACHER RESOURCES
Vocabulary activities and games
Assorted: http://woodard.latech.edu/~kklopez/EDCI424/Vocabulary%20Handout.pdf,
http://esl.yourdictionary.com/lesson-plans/esl-vocabulary-activities.html, http://jcschools.net/tutorials/vocab/PowerPoint-vocab.html, http://jcschools.net/tutorials/PowerPoint-games/, http://eslgamesworld.com/,
http://www.myvocabulary.com/,
http://wiki.fms.k12.nm.us/groups/middleschoolteachingideas/wiki/94d30/
Boggle: http://www.teaching-reading-fundamentals.com/vocabulary-games-boggle.html
Crossword puzzle maker: http://worksheets.theteacherscorner.net/make-yourown/crossword/
Semantic feature analysis:
http://hidalgo.schoolspan.com/cms/filemgr/2_5/Semantic%20Feature%20AnalysisVocabulary.pdf
Finance topics and information
Time value of money:
http://www.pennfoster.edu/~/media/Files/PDF/SampleLessons/081Finance%20Associate%20Degree.ashx
Introduction to finance: http://sparkpublic.s3.amazonaws.com/introfinance/Introfinance_Syllabus_121412.pdf
Law and valuation: http://users.wfu.edu/palmitar/Law&Valuation/chapter%201/1-33.htm
119
EFFECTIVE INSTRUCTIONAL SEQUENCE (Template)
LESSON DURATION:
LESSON TOPIC:
LESSON GOALS:
LESSON RATIONALE:
LESSON OBJECTIVES:
LESSON VOCABULARY:
I. SETTING THE STAGE:
II. PROVIDING INPUT:
III. PROVIDING GUIDED PRACTICE:
IV. PROVIDING APPLICATION AND EXTENSION:
V. PROVIDING ASSESSMENT AND EVALUATION:
LESSON MATERIALS:
120
FINANICAL ACADEMIC WORD LIST
Headwords – by word family frequency
N
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Headword
INVEST
PERCENT
BOND
FINANCE
CASH
ASSET
FUND
SECURITY
CORPORATE
DIVIDEND
EQUITY
CURRENCY
OPTION
PORTFOLIO
ECONOMY
PERIOD
INCOME
INDEX
RATIO
ISSUE
CREDIT
PURCHASE
CONTRACT
PROJECT
ANNUAL
REQUIRE
DEPOSIT
ANALYZE
MATURE
HEDGE
TRANSACTION
CHAPTER
DISCOUNT
DOMESTIC
ASSUME
ESTIMATE
Frequency
8,101
4,732
3,333
3,299
2,881
2,393
2,381
2,213
1,972
1,819
1,792
1,729
1,667
1,618
1,422
1,421
1,416
1,369
1,356
1,264
990
951
933
853
816
780
761
753
721
719
675
674
668
659
612
592
N
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
Headword
MUTUAL
PREMIUM
EXPOSURE
GLOBE
QUOTE
OBJECTIVE
COMPUTE
INDIVIDUAL
MARGIN
INCORPORATE
SWAP
STRUCTURE
VARY
INITIAL
COMMISSION
MAJOR
STRATEGY
POLICY
FACTOR
INTERNAL
FEDERAL
DATA
UNDERLIE
INFLATION
PARITY
BETA
DIVERSE
SIMILAR
BID
DEVIATION
INSTITUTE
BENEFIT
SPECIFIC
POTENTIAL
THEORY
ESTATE
Frequency
584
562
552
545
543
542
534
533
526
525
525
508
505
482
466
464
447
434
427
415
411
399
398
395
395
393
393
393
380
377
369
367
365
364
364
363
121
N
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
Headword
INDICATE
VOLATILE
BROKER
AVAILABLE
INVOLVE
SOURCE
LIABILITY
ILLUSTRATE
CREATE
CONVERT
DEPRECIATE
OVERALL
REGULATE
POSITIVE
DECLINE
APPROACH
REVENUE
LEVER
SIGNIFICANT
VOLUME
METHOD
PROCESS
PRINCIPAL
COUPON
FORECAST
MAINTAIN
NORMAL
INVENTORY
OBLIGATED
COMPOUND
EQUATION
CONCEPT
VERSUS
CONSUME
ACQUIRE
SITE
DEFINE
GENERATE
Frequency
360
359
355
348
342
339
336
334
332
331
327
327
324
319
318
316
311
308
306
303
300
300
298
295
294
292
289
281
279
276
276
275
272
263
258
257
253
249
N
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
Headword
HYPOTHESIS
NEGATIVE
WEB
LIQUIDATE
PREVIOUS
DISTRIBUTE
TREND
AFFECT
GROSS
TRANSFER
PRIMARY
ANNOUNCE
CRISIS
INTERNET
SUBSIDIARY
OCCUR
SUMMARY
TURNOVER
EMERGE
BIAS
TECHNICAL
EVALUATE
EXPIRE
BENCHMARK
ELECTRONIC
FEE
PROCEED
CYCLE
ESTABLISH
PREDICT
RANGE
DEFAULT
PLUS
DEFICIT
FOCUS
IMPORT
APPRECIATE
GOAL
Frequency
249
247
247
245
244
240
240
236
236
236
234
230
226
226
223
221
216
216
215
212
212
211
211
207
207
207
207
206
205
205
204
197
191
187
187
187
186
186
122
N
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
Headword
Frequency
PROFESSIONAL
186
FUNDAMENTAL
184
EXECUTIVE
183
OBVIOUS
183
MAXIMUM
182
MINIMUM
182
SEEK
181
COMPONENT
177
SUM
177
CONSISTENT
175
PAR
175
IMPLY
173
COMMODITY
172
OBTAIN
172
SPECULATE
172
AUTOMATE
171
CONSTANT
169
EXPAND
169
PRIOR
169
LEGAL
168
CODE
167
CONCENTRATE
166
RELEVANT
166
SURVEY
166
IDENTIFY
165
OPTIMAL
164
CONTRIBUTE
161
COUNTER
161
STATISTIC
161
RETAIN
159
EQUIVALENT
147
APPROPRIATE
146
STABLE
145
TECHNOLOGY
144
CERTIFICATE
143
WHEREAS
143
ASSESS
142
EXCEED
142
N
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
Headword
PERSPECTIVE
DENOMINATED
STYLE
TRADITION
IDENTITY
ERROR
SECTOR
FEATURE
PARTICIPATE
LOCATE
COMPENSATE
ENVIRONMENT
SEQUENCE
ELIMINATE
SECTION
ALTERNATIVE
IMPACT
DESIGN
PRINCIPLE
MINUS
ACHIEVE
AREA
EVIDENT
CRITERIA
FUNCTION
PARTNER
SUSTAIN
INCENTIVE
RESTRICT
ADJUST
EQUIPMENT
SELECT
ALLOCATE
ANTICIPATE
MODIFY
ROLE
VEHICLE
PORTION
Frequency
142
141
138
138
136
134
134
132
132
130
129
129
127
126
126
125
125
124
122
121
120
119
118
117
117
117
117
116
116
115
115
114
113
113
113
113
113
112
123
N
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
Headword
Frequency
SURPLUS
112
FACILITY
111
RANDOM
111
REVERSE
111
COEFFICIENT
110
REGISTER
110
AUTHORITY
109
COMMUNICATE
108
CONSEQUENCE
108
PROSPECT
108
AUCTION
107
CATEGORY
107
CUMULATIVE
104
EXPENDITURE
104
FLUCTUATE
104
MEDIUM
104
INFLOW
103
SERIES
103
GUARANTEE
102
INSTANCE
102
UNDERWRITE
102
FORMULA
101
ONLINE
101
RELY
101
124
FINANICAL ACADEMIC WORD LIST
Word Families
HEADWORD [word family frequency], Family member [member frequency]
ACHIEVE [120]
Achieve [86]
Achieved [34]
ACQUIRE [258]
Acquire [46]
Acquired [37]
Acquirer [12]
Acquires [7]
Acquiring [31]
Acquisition [52]
Acquisitions [73]
ADJUST [115]
Adjust [18]
Adjustment [56]
Adjustments [41]
AFFECT [236]
Affect [111]
Affected [80]
Affecting [23]
Affects [12]
Unaffected [10]
ALLOCATE [113]
Allocate [15]
Allocated [11]
Allocation [87]
Analyzing [50]
ANNOUNCE [230]
Announce [11]
Announced [62]
Announcement [99]
Announcements [39]
Announces [13]
Announcing [6]
ANNUAL [816]
Annual [775]
Annually [41]
ANTICIPATE [113]
Anticipated [79]
Anticipation [23]
Unanticipated [11]
APPRECIATE [186]
Appreciate [37]
Appreciates [25]
Appreciation [124]
APPROACH [316]
Approach [274]
Approached [4]
Approaches [38]
APPROPRIATE [146]
ALTERNATIVE [125]
ANALYZE [753]
Analyses [12]
Analysis [506]
Analyst [133]
Analyze [31]
Analyzed [14]
Analyzes [7]
AREA [119]
Area [52]
Areas [67]
ASSESS [142]
Assess [54]
Assessed [28]
Assessing [25]
Assessment [35]
ASSET [2,393]
Asset [1,110]
Assets [1,283]
ASSUME [612]
Assume [275]
Assumed [71]
Assumes [34]
Assuming [131]
Assumption [44]
Assumptions [57]
AUCTION [107]
Auction [90]
Auctions [17]
AUTHORITY [109]
Authorities [34]
Authority [57]
Authorized [18]
AUTOMATE [171]
Automated [139]
Automatic [11]
Automatically [21]
AVAILABLE [348]
Available [329]
Availability [19]
BENCHMARK [207]
Benchmark [174]
Benchmarking [4]
Benchmarks [29]
BENEFIT [367]
Beneficial [29]
125
Benefit [167]
Benefits [171]
BETA [393]
Beta [328]
Betas [65]
Coefficients [16]
COMMISSION [466]
Commission [398]
Commissions [68]
COMMODITY [172]
BIAS [212]
BID [380]
Bid [346]
Bidding [14]
Bids [20]
BOND [3,333]
Bond [2,031]
Bonds [1,302]
BROKER [355]
Broker [136]
Brokerage [106]
Brokers [113]
CASH [2,881]
Cash [2,855]
Noncash [26]
CATEGORY [107]
Categories [65]
Category [42]
CERTIFICATE [143]
Certificate [109]
Certificates [34]
CHAPTER [674]
Chapter [641]
Chapters [33]
CODE [167]
Code [68]
Codes [99]
COEFFICIENT [110]
Coefficient [94]
COMMUNICATE [108]
Communicate [11]
Communication [18]
Communications [79]
COMPENSATE [129]
Compensate [22]
Compensated [11]
Compensation [96]
COMPONENT [177]
Component [62]
Components [115]
COMPOUND [276]
Compound [61]
Compounded [64]
Compounding [151]
COMPUTE [534]
Computation [14]
Compute [210]
Computed [109]
Computer [114]
Computerized [15]
Computers [53]
Computing [19]
CONCENTRATE [166]
Concentrated [61]
Concentration [105]
CONCEPT [275]
Concept [215]
Concepts [60]
CONSEQUENCE [108]
Consequence [20]
Consequences [31]
Consequently [57]
CONSISTENT [175]
Consistency [11]
Consistent [91]
Consistently [45]
Inconsistent [28]
CONSTANT [169]
Constant [155]
Constantly [14]
CONSUME [263]
Consumer [156]
Consumers [54]
Consuming [7]
Consumption [46]
CONTRACT [933]
Contract [533]
Contracts [358]
Contractual [42]
CONTRIBUTE [161]
Contribute [25]
Contributed [24]
Contributes [12]
Contributing [21]
Contribution [48]
Contributions [31]
CONVERT [331]
Conversion [102]
Convert [63]
Converted [56]
Convertible [88]
Convertibles [5]
Converting [17]
CORPORATE [1,972]
Corporate [641]
Corporation [986]
126
Corporations [345]
COUNTER [161]
COUPON [295]
Coupon [270]
Coupons [25]
CREATE [332]
Create [100]
Created [137]
Creates [25]
Creating [28]
Creation [33]
Creative [9]
CREDIT [990]
Credit [780]
Credited [5]
Creditor [21]
Creditors [105]
Credits [53]
Creditworthiness [26]
CRISIS [226]
CRITERIA [117]
Criteria [79]
Criterion [38]
CUMULATIVE [104]
CURRENCY [1,729]
Currencies [293]
Currency [1,436]
CYCLE [206]
Cycle [144]
Cycles [62]
DATA [399]
Data [386]
Database [13]
DECLINE [318]
Decline [210]
Declined [50]
Declines [58]
DEFAULT [197]
Default [171]
Defaulted [10]
Defaults [16]
DEFICIT [187]
Deficit [119]
Deficits [68]
DEFINE [253]
Define [32]
Defined [119]
Defines [9]
Defining [13]
Definition [62]
Definitions [18]
DENOMINATED [141]
Denominated [135]
Denominations [6]
DEPOSIT [761]
Deposit [221]
Depositary [11]
Deposited [25]
Depository [378]
Deposits [126]
DEPRECIATE [327]
Depreciated [33]
Depreciation [294]
DESIGN [124]
Design [30]
Designed [87]
Designs [7]
DEVIATION [377]
Deviation [297]
Deviations [80]
DISCOUNT [668]
Discount [488]
Discounted [112]
Discounting [35]
Discounts [33]
DISTRIBUTE [240]
Distribute [19]
Distributed [30]
Distribution [148]
Distributions [43]
DIVERSE [393]
Diverse [19]
Diversifiable [15]
Diversification [228]
Diversified [118]
Nondiversifiable [13]
DIVIDEND [1,819]
Dividend [1,166]
Dividends [653]
DOMESTIC [659]
Domestic [638]
Domestically [21]
ECONOMY [1,422]
Economic [860]
Economically [9]
Economics [44]
Economies [83]
Economist [41]
Economists [55]
Economy [330]
ELECTRONIC [207]
Electronic [167]
Electronically [18]
Electronics [22]
ELIMINATE [126]
Eliminate [51]
Eliminated [38]
Eliminating [22]
127
Elimination [15]
EMERGE [215]
Emerge [12]
Emerging [203]
EVALUATE [211]
Evaluate [79]
Evaluated [14]
Evaluating [75]
Evaluation [43]
FEATURE [132]
Feature [54]
Features [78]
ENVIRONMENT [129]
Environment [99]
Environments [30]
EVIDENT [118]
Evidence [105]
Evident [13]
FEE [207]
Fee [88]
Fees [119]
EQUATION [276]
Equation [244]
Equations [32]
EQUIPMENT [115]
EXCEED [142]
Exceed [43]
Exceeded [10]
Exceeding [13]
Exceeds [76]
EQUITY [1,792]
Equities [122]
Equity [1,670]
EXECUTIVE [183]
Executive [147]
Executives [36]
FINANCE [3,299]
Finance [495]
Financed [43]
Finances [16]
Financial [2,353]
Financially [21]
Financing [348]
Nonfinancial [14]
Refinancing [9]
EQUIVALENT [147]
Equivalent [137]
Equivalents [10]
EXPAND [169]
Expand [42]
Expanded [40]
Expansion [79]
Expansionary [8]
FLUCTUATE [104]
Fluctuate [27]
Fluctuating [21]
Fluctuation [9]
Fluctuations [47]
EXPENDITURE [104]
Expenditure [45]
Expenditures [59]
FOCUS [187]
Focus [140]
Focuses [29]
Focusing [18]
ERROR [134]
Error [78]
Errors [56]
ESTABLISH [205]
Establish [52]
Established [115]
Establishes [13]
Establishing [25]
EXPIRE [211]
Expiration [166]
Expire [22]
Expires [23]
ESTATE [363]
FEDERAL [411]
FORECAST [294]
Forecast [156]
Forecasting [86]
Forecasts [52]
EXPOSURE [552]
ESTIMATE [592]
Estimate [218]
Estimated [134]
Estimates [153]
Estimating [28]
Estimation [46]
Underestimate [13]
FACILITY [111]
Facilities [63]
Facility [48]
FACTOR [427]
Factor [234]
Factors [193]
FORMULA [101]
Formula [94]
Formulas [7]
FUNCTION [117]
Function [69]
Functioning [12]
Functions [36]
128
FUND [2,381]
Funds [1,128]
Funding [31]
Funds [1,222]
FUNDAMENTAL [184]
Fundamental [180]
Fundamentally [4]
IDENTITY [136]
ILLUSTRATE [334]
Illustrate [111]
Illustrated [86]
Illustrates [98]
Illustrating [7]
Illustration [32]
Indications [6]
Indicators [126]
INDIVIDUAL [533]
Individual [474]
Individually [4]
Individuals [55]
INFLATION [395]
GENERATE [249]
Generate [82]
Generated [95]
Generates [27]
Generating [26]
Generation [19]
IMPACT [125]
GLOBE [545]
Global [493]
Globalization [21]
Globally [18]
Globe [13]
GOAL [186]
Goal [119]
Goals [67]
IMPORT [187]
Imported [36]
Imports [68]
Importer [83]
GROSS [236]
INCOME [1,416]
Income [1,406]
Incomes [10]
GUARANTEE [102]
Guarantee [51]
Guaranteed [31]
Guarantees [20]
HEDGE [719]
Hedge [416]
Hedged [53]
Hedging [250]
HYPOTHESIS [249]
Hypothesis [233]
Hypothetical [16]
IDENTIFY [165]
Identified [39]
Identify [99]
Identifying [27]
IMPLY [173]
Implied [39]
Implies [110]
Imply [24]
INCENTIVE [116]
Incentive [74]
Incentives [42]
INCORPORATE [525]
Incorporate [19]
Incorporated [500]
Incorporates [6]
INDEX [1,369]
Index [1,331]
Indexed [17]
Indices [21]
INDICATE [360]
Indicate [62]
Indicated [45]
Indicates [90]
Indicating [19]
Indication [12]
INFLOW [103]
Inflow [45]
Inflows [58]
INITIAL [482]
Initial [443]
Initially [39]
INSTANCE [102]
Instance [53]
Instances [49]
INSTITUTE [369]
Institute [25]
Institutional [209]
Institutions [135]
INTERNAL [415]
Internal [373]
Internally [42]
INTERNET [226]
INVENTORY [281]
Inventories [40]
Inventory [241]
INVEST [8,101]
Invest [265]
Invested [217]
Investing [421]
Investment [2,856]
Investments [499]
Investor [1,148]
Investors [2,583]
129
Invests [46]
Reinvest [13]
Reinvested [46]
Reinvesting [7]
INVOLVE [342]
Involve [87]
Involved [99]
Involvement [10]
Involves [112]
Involving [34]
ISSUE [1,264]
Issuance [47]
Issue [357]
Issued [279]
Issuer [154]
Issuers [55]
Issues [274]
Issuing [98]
LEGAL [168]
Legal [143]
Legally [25]
MAINTAIN [292]
Maintain [120]
Maintained [34]
Maintaining [33]
Maintains [28]
Maintenance [77]
MAJOR [464]
Major [396]
Majority [68]
MUTUAL [584]
NEGATIVE [247]
NORMAL [289]
Abnormal [128]
Normal [103]
Normally [58]
OBJECTIVE [542]
MARGIN [526]
Margin [392]
Marginal [87]
Margins [47]
OBLIGATED [279]
Obligated [19]
Obligation [95]
Obligations [165]
MATURE [721]
Mature [31]
Matured [3]
Matures [27]
Maturing [17]
Maturities [95]
Maturity [548]
OBTAIN [172]
Obtain [96]
Obtained [68]
Obtains [8]
LEVER [308]
Leverage [243]
Leveraged [36]
Levered [29]
MAXIMUM [182]
Maximization [23]
Maximize [44]
Maximizing [32]
Maximum [83]
LIABILITY [336]
Liabilities [244]
Liability [92]
MEDIUM [104]
Media [46]
Medium [58]
LIQUIDATE [245]
Liquidated [23]
Liquidation [34]
Liquidity [188]
METHOD [300]
Method [198]
Methods [102]
OBVIOUS [183]
Obvious [81]
Obviously [102]
OCCUR [221]
Occur [97]
Occurred [31]
Occurring [6]
Occurs [87]
ONLINE [101]
OPTIMAL [164]
OPTION [1,667]
Option [958]
Options [709]
MINIMUM [182]
LOCATE [130]
Locate [21]
Located [58]
Location [40]
Locations [11]
OVERALL [327]
MINUS [121]
PAR [175]
MODIFY [113]
Modified [113]
PARITY [395]
130
PARTICIPATE [132]
Participants [70]
Participate [36]
Participation [26]
PARTNER [117]
Partner [34]
Partners [36]
Partnership [47]
PERCENT [4,732]
Percent [4,306]
Percentage [409]
Percentages [17]
PERIOD [1,421]
Period [1,090]
Periodic [20]
Periodically [21]
Periods [290]
PREDICT [205]
Predict [62]
Predictable [28]
Predicted [43]
Predicting [28]
Predicts [16]
Unpredictable [28]
PREMIUM [562]
Premium [505]
Premiums [57]
PREVIOUS [244]
Previous [159]
Previously [85]
PRIMARY [234]
Primary [176]
Primarily [58]
PROJECT [853]
Project [532]
Projected [144]
Projections [30]
Projects [147]
PROSPECT [108]
Prospective [14]
Prospects [94]
PURCHASE [951]
Purchase [353]
Purchased [161]
Purchaser [9]
Purchases [74]
Purchasing [254]
Repurchase [87]
Repurchased [13]
PLUS [191]
PRINCIPLE [122]
Principle [70]
Principles [52]
QUOTE [543]
Quotation [23]
Quotations [209]
Quote [71]
Quoted [131]
Quotes [109]
POLICY [434]
Policies [104]
Policy [330]
PRIOR [169]
RANDOM [111]
PRECEDE [207]
Procedure [32]
Procedures [52]
Proceed [12]
Proceeding [7]
Proceeds [104]
RANGE [204]
Range [166]
Ranges [24]
Ranging [14]
PRINCIPAL [298]
PERSPECTIVE [142]
PORTFOLIO [1,618]
Portfolio [1,373]
Portfolios [245]
PORTION [112]
Portion [105]
Portions [7]
POSITIVE [319]
Positive [298]
Positively [21]
PROCESS [300]
Process [258]
Processed [5]
Processes [10]
Processing [27]
POTENTIAL [364]
Potential [336]
Potentially [28]
PROFESSIONAL [186]
Professional [115]
Professionals [71]
RATIO [1,356]
Ratio [988]
Ratios [368]
REGISTER [110]
Register [12]
Registered [98]
REGULATE [324]
Regulated [32]
Regulates [4]
Regulating [7]
131
Regulation [105]
Regulations [75]
Regulatory [101]
RELEVANT [166]
Irrelevant [30]
Relevant [136]
RELY [101]
Reliable [25]
Reliance [11]
Relies [10]
Rely [47]
Relying [8]
REQUIRE [780]
Require [102]
Required [422]
Requirement [36]
Requirements [124]
Requires [96]
RESTRICT [116]
Restricted [37]
Restrictions [69]
Restrictive [10]
RETAIN [159]
Retain [18]
Retained [86]
Retains [8]
Retention [47]
REVENUE [311]
Revenue [215]
Revenues [96]
REVERSE [111]
Reversal [43]
Reverse [60]
Reversed [8]
ROLE [113]
Role [105]
Roles [8]
SECTION [126]
SECTOR [134]
SECURITY [2,213]
Securities [1,546]
Securitization [13]
Security [626]
Unsecured [28]
SEEK [181]
Seek [97]
Seeking [53]
Seeks [31]
SELECT [114]
Select [36]
Selected [43]
Selection [35]
SEQUENCE [127]
Sequence [28]
Subsequent [63]
Subsequently [36]
SERIES [103]
SIGNIFICANT [306]
Significance [10]
Significant [251]
Significantly [45]
SIMILAR [393]
Similar [235]
Similarities [9]
Similarly [149]
SITE [257]
Site [195]
Sites [62]
SOURCE [339]
Source [243]
Sources [96]
SPECIFIC [365]
Specific [218]
Specifically [44]
Specified [75]
Specifies [15]
Specify [13]
SPECULATE [172]
Speculate [10]
Speculative [75]
Speculators [87]
STABLE [145]
Stability [81]
Stabilize [16]
Stable [48]
STATISTIC [161]
Statistical [78]
Statistics [83]
STRATEGY [447]
Strategic [32]
Strategies [156]
Strategy [259]
STRUCTURE [508]
Restructuring [25]
Structure [386]
Structured [69]
Structures [28]
STYLE [138]
SUBSIDIARY [223]
Subsidiaries [44]
Subsidiary [169]
Subsidized [10]
SUM [177]
Sum [151]
Sums [26]
SUMMARY [216]
Summarize [16]
132
Summarized [27]
Summarizes [25]
Summary [148]
SURPLUS [112]
Surplus [76]
Surpluses [36]
SURVEY [166]
Survey [126]
Surveyed [8]
Surveys [32]
SUSTAIN [117]
Sustainable [90]
Sustained [21]
Unsustainable [6]
SWAP [525]
TECHNICAL [212]
Technical [207]
Technically [5]
TECHNOLOGY [144]
Technological [11]
Technologies [25]
Technology [108]
THEORY [364]
TRADITION [138]
Tradition [17]
Traditional [109]
Traditionally [12]
TRANSACTION [675]
Transaction [347]
Transactions [328]
TRANSFER [236]
Transfer [167]
Transferred [26]
Transferring [20]
Transfers [23]
TREND [240]
Trend [144]
Trends [96]
TURNOVER [216]
UNDERLIE [398]
Underlies [5]
Underlying [393]
UNDERWRITE [102]
Underwrite [6]
Underwriting [92]
Underwritten [4]
VARY [505]
Variability [44]
Variable [91]
Variables [41]
Variance [129]
Variant [5]
Variation [67]
Variations [16]
Varies [42]
Vary [59]
Varying [11]
VEHICLE [113]
Vehicle [43]
Vehicles [70]
VERSUS [272]
VOLATILE [359]
Volatile [73]
Volatility [286]
VOLUME [303]
Volume [288]
Volumes [15]
WEB [247]
WHEREAS [143]
133